On October 1, 2018, the Allegheny Corporation purchased machinery for $233,000. The estimated service life of the machinery is 10 years and the estimated residual value is $2,000. The machine is expected to produce 420,000 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.

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
	Cost minus Salvage	/	Estimated Useful Life (years)	=	Annual Depreciation
		/		=
Year	Annual Depreciation	x	Fraction of Year	=	Depreciation Expense
2018		x		=
2019		x		=

2. Sum-of-the-years-digits.

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

3. Double-declining balance.

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.

	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
2018						$0
2019					$0	$0

4. One hundred fifty percent declining balance.

Calculate depreciation for 2018 and 2019 using one hundred fifty percent declining balance. Partial-year depreciation is calculated based on the number of months the asset is in service. (Do not round your intermediate calculations and round your final answers to nearest whole number.)

	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
2018						$0
2019					$0	$0

5. Units of production (units produced in 2018, 21,000; units produced in 2019, 36,000)

Calculate depreciation for 2018 and 2019 using Units of production (units produced in 2018, 21,000; units produced in 2019, 36,000). Partial-year depreciation is calculated based on the number of months the asset is in service. (Round "Depreciation per unit rate" answers to 2 decimal places.)

Select formula for Units of Production Depreciation:
Calculate 2018 depreciation expense:
Depreciation per unit rate
Units produced in 2018
Depreciation in 2018
Calculate 2019 depreciation expense:
Depreciation per unit rate
Units produced in 2019
Depreciation in 2019