Question 4: 15 ABC Company has purchased a machine costing $500,000 on 1 July 2010. The machines expected useful life is 4 years. Over its useful life, the machine is expected to produce 240,000 units of product. The salvage value of the machine is $50,000. The year wise production schedule is given below. The company started using machine on 1st July 2010. The company closes its accounts on 31-December every year. Production in year 1 (1-Jul-2010 to 30-Jun-2011) of machine = 110,000 units Production in year 2 (1-Jul-2011 to 30-Jun-2012) of machine = 25,000 units Production in year 3 (1-Jul-2012 to 30-Jun-2013) of machine = 60,000 units Production in year 4 (1-Jul-2013 to 30-Jun-2014) of machine = 45,000 units Required: 1. What is depreciation expense recorded by the company by the end of 2010 under Straight Line Depreciation and Unit of Production methods. 2. Prepare depreciation schedule using Straight Line Depreciation 3. Prepare depreciation schedule using Unit of Production Method