On January 2, 2021, 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-lineb. Double-declining-balancec. Units-of-production, assuming actual units produced were:

Comment on the total depreciation amounts under each method.

Transcribed Image Text:

Year 2021 2022 2023 2024 Units 38,300 41,150 52,600 56,000