Question 1 Sandhill Limited purchased a machine on account on April 2, 2018, at an invoice price of $332,220. On April 4, it paid $2,170 for delivery of the machine. A one-year, $3,960 insurance policy on the machine was purchased on April 5. On April 18, Sandhill paid $7,840 for installation and testing of the machine. The machine was ready for use on April 30. Sandhill estimates the machine's useful life will be five years or 6,153 units with a residual value of $77,180. Assume the machine produces the following numbers of units each year: 953 units in 2018; 1,483 units in 2019; 1,279 units in 2020; 1,390 units in 2021; and 1,048 units in 2022. Sandhill has a December 31 year end. Your answer is correct. Determine the cost of the machine. Cost of the machine 342230 Your answer is partially correct. Try again. Calculate the annual depreciation and total depreciation over the asset's life using: (Round the depreciation cost per unit to the nearest cent. Round answers to O decimal places, e.g. 5,275.) (1) Straight-line method Year Depreciable Cost Depreciation Expense Accumulated Depreciation Carrying Amount 2018 265050 35340 35340 306890 2019 265050 53010 88350 253880 2020 265050 53010 141370 200870 2021 265050 53010 194390 147860 2022 247410 265059 265050 94850 7 9 LOGO 53010 17670 2023 T 7 265050 300430 77180 (2) Double-diminishing-balance method (2) Double-diminishing-balance method Year Opening Carrying Amount Depreciation Expense Accumulated Depreciation Carrying Amount 2018 342230 91261 91261 250969 2019 250969 100388 | 191649 150581 2020 150581 60232 251881 1 90349 X2 2021 1 90349 T 36140 T 288021 54209 2022 54209 21684 309705 32525 2023 2023 32525 4337 T 314042 314042 T 28188 28188 (3) Units-of-production method Year Units-of-production Depreciation Expense Accumulated Depreciation Carrying Amount 2018 2018 7 958 40979 40979 40979 20979 301251 301251 (3) Units-of-production method Year Units-of-production Depreciation Expense Accumulated Depreciation Carrying Amount 2018 1 953 40979 40979 301251 $ 2019 1483 63769 104748 237482 PM 2020 54997 DORDO 159745 1279 182485 00000 2021 1390) 59770 219515 122715 2022 2022 1 048 45064 264579 77651 Which method causes net income to be lower in the early years of the asset's life? T Double-Diminishing-Balance Method |