PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $15,500. The estimated useful life was five years, and the residual value was $2,500. Assume that the estimated productive life of the machine is 13,000 units. Expected annual production was: year 1, 4,000 units; year 2, 4,000 units; year 3, 2,500 units; year 4, 1,300 units; and year 5, 1,200 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount.) a. Straight-line.

b. Units-of-production.

c. Double-declining-balance.

2-a. Which method will result in the highest net income in year 2?

• Straight-line

• Units-of-production

• Double-declining-balance

2-b. Does this higher net income mean the machine was used more efficiently under this depreciation method?

• Yes

• No