Torge Company bought a machine for $62,000 cash. The estimated useful life was five years and the estimated residual value was $8,000. Assume that the estimated useful life in productive units is 174,000. Units actually produced were 46,400 in year 1 and 52,200 in year 2.

Required:

1. Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations.)

2-a. Which method would result in the lowest net income for year 1?

A.Units-of-production

B.Straight-line

C.Double-declining-balance

2-b. Which method would result in the lowest net income for year 2?

A.Units-of-production

B.Straight-line

C.Double-declining-balance

Which method would result in the lowest fixed asset turnover ratio for year 1?

A.Units-of-production

B.Double-declining-balance

C.Straight-line