veal corporation bought a machine at the beginning of the year at the cost of $18,600. The estimated useful life was ten years, and the residual value was $600. Assume that the estimated productive life of the machine is 100,000 units. Annual production for the first 3 years was: 35,000 units in year 1: 25,000 units in year 2: and 18,000 units in year 3.

What is the deprecation cost of the machine? Using the straight-line method what is the deprecation cost reported in year1? What is the book value at the end of year 2. Using the units of production method, what is the depecation cost for year 1? Using the double declining balance method, what is the book value at the end of year 1?