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Torge Company bought a machine for $63,000 cash. The estimated useful life was five years and the estimated residual value was $6,000. Assume that the
Torge Company bought a machine for $63,000 cash. The estimated useful life was five years and the estimated residual value was $6,000. Assume that the estimated useful life in productive units is 153,000. Units actually produced were 40,800 in year 1 and 45,900 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations.) Depreciation Expense for Book Value at the End of Year 2 Method of Depreciation Straight-line Year 1 Year 2Year 1 $ 11,40011,400 S 51,60 40,200 $ 15,09616,983 S 47,904 30,921 Double-declining-balance S 25,00015,120 37,800 22,680 2-a. Which method would result in the lowest net income for year 1? Units-of-production Straight-line Double-declining-balance 2-b. Which method would result in the lowest net income for year 2? Units-of-production Double-declining-balance Straicht line
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