Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $36,000. The estimated useful life was five years and the residual value was $3,500. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 1,900 units; year 2, 2,900 units; year 3.1,900 units; year 4. 1.900 units, and year 5, 1,400 units. Required: 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? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Req1c Reg 2A Reg 28 Complete a depreciation schedule for Straight-line method. (Do not round Intermediate calculations.) Income Statement Balance Sheet Year Depreciation Cost Accumulated Expense Depreciation Book Value At acquisition 1 2 3 4 5 Reg 18 > Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $36,000. The estimated useful life was five years and the residual value was $3,500. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1.1.900 units, year 2, 2,900 units: year 3, 1,900 units; year 4, 1900 units; and year 5, 1,400 units. Required: 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? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Reg 2A Reg 28 Complete a depreciation schedule for Units-of-production method. (Do not round Intermediate calculations.) Balance Sheet Income Statement Depreciation Expense Year Cost Accumulated Depreciation Book Value Al acquisition 1 2 3 4 5 Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $36,000. The estimated useful life was five years and the residual value was $3,500. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1.1,900 units; year 2.2,900 units; year 3, 1,900 units: year 4. 1.900 units; and year 5, 1.400 units. Required: 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? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Req 1C Reg 2 Req 28 Complete a depreciation schedule for Double-declining balance method. (Do not round Intermediate calculations, Round final answers to the nearest whole dollars) Balance Sheet Income Statement Depreciation Expense Year Cost Accumulated Depreciation Book Value At acquisition 1 2 3 4 5
