On October 1, 2018, the Allegheny Corporation purchased machinery for $314,000. The estimated service life of the machinery is 10 years and the estimated residual value is $6,000. The machine is expected to produce 550,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 1. Straight line. 2. Sum-of-the-years-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance. 5. Units of production (units produced in 2018, 28,000; units produced in 2019, 43,000).

Calculate depreciation for 2018 and 2019 using straight line method. Partial-year depreciation is calculated based on the number of months the asset is in service.

Straight-Line Depreciation
	Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation
		/		=	Annual Depreciation
		/		=
Year	Annual Depreciation	x	Fraction of Year	=	Depreciation Expense
2018		x		=
2019		x		=	$

Calculate depreciation for 2018 and 2019 using sum-of-the-years digits. Partial-year depreciation is calculated based on the number of months the asset is in service.

Sum-of-the-years' digits depreciation
	Depreciable Base	x	Rate per Year	x	Fraction of Year	=	Depreciation Expense
10/1/2018 through 12/31/2018		x		x		=
Total depreciation expense - 2018
1/1/2019 through 9/30/2019		x		x		=
10/1/2019 through 12/31/2019		x		x		=	$
Total depreciation expense - 2019

Calculate depreciation for 2018 and 2019 using double-declining balance. Partial-year depreciation is calculated based on the number of months the asset is in service.