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Sneetch Inc. purchased a star-making machine on January 1, 2014. The cost of the machine was $17,000. Its estimated residual value was $2,000 at the

Sneetch Inc. purchased a star-making machine on January 1, 2014. The cost of the machine was $17,000. Its estimated residual value was $2,000 at the end of an estimated 10-year life. The company expects to produce a total of 20,000 units.

a.

Calculate depreciation expense for 2014 and 2015 using the straight-line method.

b.

Calculate depreciation expense for 2014 and 2015 using the double-declining balance method.

c.

Calculate the depreciation expense for 2014 and 2015 using the units-of-production method. The company produced 1,500 units in 2014 and 2,200 units in 2015. (Do not round your Depreciation rate per unit.)

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