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Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $38,000. The estimated useful life was five years and

Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $38,000. The estimated useful life was five years and the residual value was $4,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production for year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units.

Required:

1.

Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)

a.

Straight-line.

b.

Units-of-production.

c.

Double-declining-balance.

2-a.

Which method will result in the highest net income in year 2?

Double-declining-balance

Straight-line

Units-of-production

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