Fern Incorporated bought a machine for $61,000 cash. The estimated useful life was five years and...

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Fern Incorporated bought a machine for $61,000 cash. The estimated useful life was five years and the estimated residual value was $7,000. Assume that the estimated useful life in productive units is 156,000. Units actually produced were 41,600 in year 1 and 46,800 in year 2 Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3 Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round final Req 1 Req 2A Req 28 Req 3 Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.) Method of Depreciation Depreciation Expense Book Value at the End of Year 1 Year 2 Year 1 Year 2 Straight-line Units-of-production Double-declining-balarice 10,800 $ 10,800 $ 50,200 $ 39,400 24,400 $ 14,640 S 36,600 $ 21,960 < Reg 1 Req 2A > Fern Incorporated bought a machine for $61,000 cash. The estimated useful life was five years and the estimated residual value was $7,000. Assume that the estimated useful life in productive units is 156,000. Units actually produced were 41,600 in year 1 and 46,800 in year 2 Required: 1. Determine the appropriate amounts to complete the following schedule. 2-a. Which method would result in the lowest net income for year 1? 2-b. Which method would result in the lowest net income for year 2? 3. Which method would result in the lowest fixed asset turnover ratio for year 1? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3 Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round final Req 1 Req 2A Req 28 Req 3 Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.) Method of Depreciation Depreciation Expense Book Value at the End of Year 1 Year 2 Year 1 Year 2 Straight-line Units-of-production Double-declining-balarice 10,800 $ 10,800 $ 50,200 $ 39,400 24,400 $ 14,640 S 36,600 $ 21,960 < Reg 1 Req 2A >

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Depreciation expense Book value at the end o... View the full answer