E8-10 (Algo) Computing Depreciation under Alternative Methods LO8-3

Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $1,900,000. The estimated residual value was $100,000. 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:

Year	Units
1	70,000
2	67,000
3	50,000
4	73,000
5	40,000

Required:

1. Complete a separate depreciation schedule for each of the alternative methods.

a. Straight-line.

b. Units-of-production.

c. Double-declining-balance.

This is the chart to use for each question. Boxes with a dash in it do not have to be filled.

Year	Depreciation Expense	Accumulated Depreciation	Net Book Value
At acquisition	-	-
1
2
3
4
5