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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
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. 2-0. Which method would resuit in the lowest Eamings 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 outlows in Year 1 ? Determine the appropriate amounts to complete the following schedule. Note: Do not round your intermediate caiculations. Which method would result in the lowest Earnings per Share for Year 1 ? Which method would result in the lowest Earnings per Share for Year 2? Which method would result in the highest amount of cash outflows in Year 1
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