Question: I need help with the letter b: Which method results in the highest net income?. Please indicate your full solution and correct answers. Carla Vista

 I need help with the letter b: "Which method results inthe highest net income"?. Please indicate your full solution and correct answers.

Carla Vista Ltd. purchased a new machine on April 4, 2017, ata cost of $176,000. The company estimated that the machine would have

a residual value of $18,000. The machine is expected to be usedI need help with the letter b: "Which method results in the highest net income"?. Please indicate your full solution and correct answers.

Carla Vista Ltd. purchased a new machine on April 4, 2017, at a cost of $176,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,600 hours in 2017;2,200 hours in 2018;2,300 hours in 2019 ; 2,000 hours in 2020 ; and 1,900 hours in 2021. Carla Vista has a December 31 year end. Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.) (1) Straight-line for 2017 through to 2021. 2017 expense $ 2018 expense $ 2019 expense $ 2020 expense $ 2021 expense $ (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. $ 2018 expense $ 2019 expense $ $ $ (3) Units-of-production for 2017 through to 2021. 2017 expense $ 2018 expense $ 2019 expense $ 2020 expense $ $ Which method results in the highest net income? Which method results in the highest cash flow

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!