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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 S6,000. 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 S6,000. Assume that the estimated useful life in productive units is 168,000 Units actually produced were 44,800 in year 1 and 50,400 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 Year 1 Method of Depreciation Straight-line Units-of-production Double-declining-balance Year 1 Year 2 2-a. Which method would result in the lowest net income for year 1? O straight-line Units-of-production Double-declining-balance 2-b. Which method would result in the lowest net income for year 2? O Units-of-production Double-declining-balance 0 Straight-line 3. Which method would result in the lowest fixed asset turnover ratio for year 1? O Straight-line Units-of-production Double-declining-balance
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