PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $12,000. The estimated useful life was five years, and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was: year 1, 3,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 1,000 units; and year 5, 1,000 units.

Find:

Straight-line.

Units-of-production.

Double-declining-balance.

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

• Units-of-production
• Double-declining-balance
• Straight-line

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

yes or no

show all work (like question number 2)