On January 1, Year 1, Scott Company purchased a new machine for $420,000. The machine is expected to have an eight year life and a $120,000 salvage value. The machine is expected to produce 1,000,000 finished products during its eight year life. Production during Year 1 was 90,000 units and during Year 2 was 130,000 units.

Required:

• a.  Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2 , respectively, using Straight line method.
• b) Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2, respectively, using Units-of production method:  Do not round your intermediate calculations. Round your answers to the nearest whole dollars.
•  c) Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2, respectively, using Double declining-balance method:  Do not round your intermediate calculations.

Answer rating: 100% (QA)

a Straightline method Depreciation expense per year Cost Salvage va... View the full answer