Torge Company bought a machine for $71,600 cash. The estimated useful life was five years, and the estimated residual value was $7,200. Assume that the estimated useful life in productive units is 161,000. Units actually produced were 42,200 in year 1 and 48,300 in year 2.

E9-15 Computing Depreciation and Book Value for Two Years Using Alternative Depreciation Methods and Interpreting the Impact on the Fixed Asset Turnover Ratio [LO3, LO7] Torge Company bought a machine for $71,600 cash. The estimated useful life was five years, and the estimated residual value was $7,200. Assume that the estimated useful life in productive units is 161,000 Units actually produced were 42,200 in year 1 and 48,300 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. Depreciation Expense for Book Value at the End of Method of DepreciationYear 1 Year 2 Year 1 Year 2 Straight-ine Un balance 2-a. Which method would result in the lowest net inoome for Year 1 2-b. Which method would result in the lowest net income for Year 27 3. Which method would result in the lowest fixed asset tumover ratio for year 1? Straight-line Double-declining-balance Units-of-production