Schrade Company bought a machine for $136,000 cash. The estimated useful life was four years and the estimated residual value was $5,340. Assume that the estimated useful life in productive units is 139,000. Units actually produced were 62,000 in Year 1 and 64,000 in Year 2.

Required:

1. Determine the appropriate amounts to complete the following schedule.

2-a. Which method would result in the lowest Earnings per Share for Year 1?

2-b. Which method would result in the lowest Earnings per Share for Year 2?

3. Which method would result in the highest amount of cash outflows in Year 1?

1. Determine the appropriate amounts to complete the following schedule.

Note: Do not round your intermediate calculations.

Method of Depreciation	Depreciation Expense for		Net Book Value at the End of
	Year 1	Year 2	Year 1	Year 2
Straight-line
Units-of-production
Double-declining-balance

2-a Which method would result in the lowest Earnings per Share for Year 1?

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

2.B- Which method would result in the lowest Earnings per Share for Year 2?

Straight-line

Units-of-production

Double-declining-balance

3. Which method would result in the highest amount of cash outflows in Year 1?

Straight-line

Units-of-production

Double-declining-balance