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Schrade Company bought a machine for $72,000 cash. The estimated useful life was five years, and the estimated residual value was $5,400. Assume that
Schrade Company bought a machine for $72,000 cash. The estimated useful life was five years, and the estimated residual value was $5,400. Assume that the estimated useful life is 133,200 units. Units actually produced were 45,250 in year 1 and 43,050 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Method of Depreciation Straight-line Units-of-production Double-declining-balance Depreciation Expense for Year 1 Carrying Amount at the End of Year 2 Year 1 Year 2 2. Which method would result in the lowest earnings per share for year 1? For year 2? Year 1 Year 2
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