Computing Depreciation under Alternative Methods Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $950,000. The estimated residual value was $50,000. Assume that the estimated useful life was five years and the estimated productive life of the machine was 300,000 units. Actual annual production was as follows: E8-10 LO8-3 Units 70,000 67,000 50,000 73,000 40,000 Year 4 Required 1. Complete a separate depreciation schedule for each of the alternative methods. Round your answers to the nearest dollar. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Method: Depreciation Accumulated Depreciation Net Book Value Year Computation Expense At acquisition etc. 2. Assuming that the machine was used directly in the production of one of the products that the company manufactures and sells, what factors might management consider in selecting a prefe depreciation method in conformity with the expense principle? a. Straight-line Depreciation Accumulated Expense Depreciation Book Value Year Computation $950,000 2 3 18000090.00 900 b. Units-of-production Depreciation Accumulated Net Expense Depreciation Book Value Year At acquisition Computation $950,000 2 531000 902 020 500 c. Double-declining-balance: Depreciation Accumulated Net ExpenseDepreciation Book Valu 950,000 Year Computation 2 3 5