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Torge Company bought a machine for $78,000 cash. The estimated useful life was five years and the estimated residual value was $9,000. Assume that the

Torge Company bought a machine for $78,000 cash. The estimated useful life was five years and the estimated residual value was $9,000. Assume that the estimated useful life in productive units is 210,000. Units actually produced were 56,000 in year 1 and 63,000 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?

Double-declining-balance
Straight-line
Units-of-production

2-b.

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

Straight-line
Units-of-production
Double-declining-balance

3.

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

Straight-line
Units-of-production
Double-declining-balance

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