Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $39,000. The estimated useful life was five years and the residual value was $4,000. Assume that the estimated productive life of the machine is 20,000 units. Expected annual production was year 1,4,600 units; year 2, 5,600 units; year 3, 4,600 units: year 4, 4,600 units; and year 5, 600 units. Required: ts 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. eBook 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Hint Complete this question by entering your answers in the tabs below. Print Reg A Req 18 Req 1CReq 2A Req 28 erences Compie ird Meprecation schedute for Straight-ine method. (o not round intermediate calculat Rea 1A Income Statement Depreciation Balance Sheet Year Book Value Expense Cost Accumulated At acquisition Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $39,000. The estimated useful ife was five years and the residual value was $4,000. Assume that the estimated productive life of the machine is 20,000 units. Expected annual production was year 1, 4,600 units; year 2, 5,600 units; year 3, 4,600 units; year 4, 4,600 units; and year 5,600 units. Required: ints 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line b. Units-of-production. c. Double-declining-balance. 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Hint Complete this question by entering your answers in the tabs below. Print Req 1C Req 2A Req 28 ferences Complete a depreciation schedule for Units-of-production method. (Do not round intermediate calculations.) Income Statement Balance Sheet Depreciation Year Expenseecmulated Depreciation Book Value At acquisition 6 Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $39,000. The estimated useful life was five years and the residual value was $4,000. Assume that the estimated productive life of the machine is 20,000 units. Expected annual production was year 1, 4,600 units; year 2, 5,600 units; year 3, 4,600 units; year 4, 4,600 units; and year 5, 600 units. Required: 20 oints 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Hint Complete this question by entering your answers in the tabs below. Print Req 1A Req 18 Req C Req 2A Req 2B Complete a depreciation schedule for Double-declining-balance method. (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) Income Statement Depreciation Expense Balance Sheet Accumulated Bk v Depreciati Year At acquisition 2
