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Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $42,000. The estimated useful life was five years and
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $42,000. The estimated useful life was five years and the residaul value was $5,000. Assume that the estimated productive life of the machine is 20,000 units. Expected annual production for year 1 is 4,500 units and year 2 is 5,500 units Required: Calculate depreciation expense reported on income statement for year 1 and year 2 using each of the three methods listed. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar.) year 1 year 2 1. Straight-line 2. Units-of-production 3. Double-declining balance
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