Sunland Limited purchased a machine on account on April 1, 2021, at an invoice price of $337,200. On April 2, it paid $2,020 for delivery of the machine. A one-year, $4,190 insurance policy on the machine was purchased on April 5. On April 19, Sunland paid $7,530 for installation and testing of the machine. The machine was ready for use on April 30. Sunland estimates the machines useful life will be five years or 6,295 units with a residual value of $84,640. Assume the machine produces the following numbers of units each year: 1,001 units in 2021; 1,379 units in 2022; 1,477 units in 2023; 1,415 units in 2024; and 1,023 units in 2025. Sunland has a December 31 year end.

(a)

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Determine the cost of the machine.

Cost of the machine

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(b)

Calculate the annual depreciation and total depreciation over the assets life using: (Round the depreciation cost per unit to 2 decimal places. Round answers to 0 decimal places, e.g. 5,275.) (1) Straight-line method

Year		Depreciable Amount		Depreciation Expense		Accumulated Depreciation		Carrying Amount
2021		$		$		$		$
2022
2023
2024
2025
2026

(2) Double-diminishing-balance method

Year		Opening Carrying Amount		Depreciation Expense		Accumulated Depreciation		Carrying Amount
2021		$		$		$		$
2022
2023
2024
2025
2026

(3) Units-of-production method

Year		Units-of-production		Depreciation Expense		Accumulated Depreciation		Carrying Amount
2021				$		$		$
2022
2023
2024
2025

Which method causes net income to be lower in the early years of the assets life? Double-Diminishing-Balance MethodUnits-of-Production MethodStraight-Line Method