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Torge Company bought a machine for $65.900 cash. The estimated useful life was five years, and the estimated residual value was $5,300. Assume that the
Torge Company bought a machine for $65.900 cash. The estimated useful life was five years, and the estimated residual value was $5,300. Assume that the estimated useful life in productive units is 151500 Units actually produced were 40,300 in year 1 and 45,450 in year 2 Required: 1. Determine the appropriate amounts to complete the following schedule, Depreciation Expense for Year 1 Year 2 Book Value at the End of Year 1 Year 2 Method of Depreciation Straight-line Units-of-production Double-declining balance 2-a. Which method would result in the lowest net income for Year 1? Straight-line Units-of-production Double-declining-balance 2.b. Which method would result in the lowest net income for Year 2? Units-of-production Straight-line Double-declinina-balance 2-a. Which method would result in the lowest net income for Year 1? O Straight-line O Units-of-production O Double-declining balance 2-b. Which method would result in the lowest net income for Year 2? O Units-of-production Straight-line O Double-declining-balance 3. Which method would result in the lowest fixed asset turnover ratio for year 1? O Units-of-production O Double-declining-balance O Straight-line
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