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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. (Round your answers to the nearest dollar amount. Do not round intermediate calculations.) Depreciation Expense for Net Book Value at the End o Year 1 Year 1 Method of Depreciation Straight-line Units-of-production Double-declining-balance Year 2 Year 2 20 2.a Which method would result in the lowest EPS for year 1? Straight-ine Units-of-production Double-declining-balance 2.b Which method would result in the lowest EPS for year 2? Straight-line Units-of-production Double-declining-balance 21 3. Which method would result in the highest amount of cash outflows in year 1? 1? Straight-line Units-of-production Double-declining-balanceStep by Step Solution
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