On January 1, 2014, a machine was installed at Moncton’s Lavy Factory at a cost of $58,000. Its estimated residual value at the end of its estimated life of four years is $18,000. The machine is expected to produce 80,000 units with the following production schedule:
◆ 2014: 12,000 units
◆ 2016: 15,000 units
◆ 2015: 27,000 units
◆ 2017: 26,000 units
Complete amortization schedules for
a. Straight-line.
b. Units-of- production.
c. Double-declining-balance at twice the straight-line rate.
d. Sum-of-the-years’-digits (optional) methods.