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Schrade Company bought a machine for $96,000 cash. The estimated useful life was four years and the estimated residual value was $6,000. Assume that
Schrade Company bought a machine for $96,000 cash. The estimated useful life was four years and the estimated residual value was $6,000. Assume that the estimated useful life in productive units is 120,000. Units actually produced were 43,000 in Year 1 and 45,000 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? Required 1 Required 2a Required 2b Required 3 Determine the appropriate amounts to complete the following schedule. (Do not round your intermediate calculations.) Method of Depreciation Straight-line Units-of-production Double-declining-balance Depreciation Expense for Year 1 Year 2 Net Book Value at the End of Year 1 Year 2 < Required 1 Required 2a >
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