Schrade Company bought a machine for $138,000 cash. The estimated useful life was four years and the estimated residual value was $5,000. Assume that the estimated useful life in productive units is 140,000. Units actually produced were 63,000 in Year 1 and 65,000 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

2A: Which method would result in the lowest Earnings per Share for Year 1?

A. Straight-line

B. Units-of-production

C. Double-declining-balance

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

A. Straight-line

B. Units-of-production

C. Double-declining-balance

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

A. Straight-line

B. Units-of-production

C. Double-declining-balance