On October 1, 2013, the Allegheny Corporation purchased machinery for $203,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 300,000 units during its life.

Required:

Calculate depreciation for 2013 and 2014 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. (Do not round intermediate calculations.)

1. Straight Line

Straight-Line Depreciation
	Choose Numerator:	0	Choose Denominator:	=	Annual Depreciation
		0		=	Annual Depreciation
			0		=
$0	Annual Depreciation	0	0	=	0
2013		x		=
2014		x		=

2.	Sum-of-the-years digits.

Sum-of-the-years' digits depreciation

Depreciable Base

0

Rate per Year

x

Fraction of Year

=

Depreciation Expense

10/1/2013 through 12/31/2013

0

x

=

Total depreciation expense - 2013

1/1/2014 through 9/30/2014

0

x

=

10/1/2014 through 12/31/2014

0

x

=

Total depreciation expense - 2014

3.	Double-declining balance

	Depreciation for the Period							End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Fraction of Year	Depreciation Expense	Accumulated Depreciation	Book Value
2013
2014

4.	One hundred fifty percent declining balance

	Depreciation for the Period							End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Fraction of Year	Depreciation Expense	Accumulated Depreciation	Book Value
2013
2014