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Plastic Works Corporation bought a machine at the beginning of the year at a cost of $12,000. The estimated useful life was 5 years and
Plastic Works Corporation bought a machine at the beginning of the year at a cost of $12,000. The estimated useful life was 5 years and the residual value was $2,000. Assume that the estimated productive life of the asset is 10,000 units. Expected annual production was: Year \#1: 3000 units; Year \#2: 3000 units; Year \#3: 2000 units; Year \#4: 1000 units; Year \#5: 1000 Which method will result in the highest net income in year \#2? Does this higher net income mean the machine was used more efficiently under this depreciation method
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