Question: please answer all Crane Limited purchased a machine on account on April 2, 2018, at an invoice price of $360,090. On April 4, it paid

please answer all

Crane Limited purchased a machine on account on April 2, 2018, at an invoice price of $360,090. On April 4, it paid $1,850 for delivery of the machine. A one-year, $4,250 insurance policy on the machine was purchased on April 5. On April 18, Crane paid $8,280 for installation and testing of the machine. The machine was ready for use on April 30. Crane estimates the machines useful life will be five years or 6,018 units with a residual value of $85,700. Assume the machine produces the following numbers of units each year: 859 units in 2018; 1,504 units in 2019; 1,312 units in 2020; 1,267 units in 2021; and 1,076 units in 2022. Crane has a December 31 year end.

1. determine the cost of the machine

2. calculate

Depreciable Cost Depreciation Expense Accumulated Depreciation Carrying Amount

using a. straight line method, b. double diminishing method, c. units of production method

3. Which method causes net income to be lower in the early years of the assets life?

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