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PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $ 1 8 , 3 0 0 . The estlmated
PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $ The estlmated useful life was five years,
and the residual value was $ Assume that the estimated productlve life of the machine is units. Expected annual
production was: year units; year units; year units; year unlts; and year units.
Required:
Complete a depreclation schedule for each of the alternatlve methods. Enter all values as positive amount.
a Straightline.
b Unitsofproduction.
c Doubledecliningbalance.
a Which method will result in the highest net income in year
Unitsofproduction
Stralghtline
Doubledecliningbalance
b Does this higher net Income mean the machine was used more efficlently under this depreclation method?
No
Yes
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