On January 2, 2018, Wavepoint Systems, a cell phone manufacturer, installed a computerized machine in its factory at a cost of $169,200. The machine?s useful life was estimated at four years or a total of 181,500 units with a $24,000 trade-in value. Wavepoint?s year-end is December 31. Calculate depreciation for each year of the machine?s estimated useful life and the total depreciation for all 4 years under each of the following methods:

a. Straight-line

b. Double-declining-balance

c. Units-of-production, assuming actual units produced were:

d. Comment on the total depreciation amounts under each method.

Transcribed Image Text:

Year . .... 2018 38,300 2019 41,150 2020 2021 52,600 56,000 Units.