Problem 9-3A a-b Ivanhoe Limited purchased a machine on account on April 2, 2018, at an invoice price of $331,760. On April 4, it paid $2,070 for delivery of the machine. A one-year, $4,000 insurance policy on the machine was purchased on April 5. On April 18, Ivanhoe paid $8,490 for installation and testing of the machine. The machine was ready for use on April 30. Ivanhoe estimates the machine's useful life will be five years or 6,321 units with a residual value of $86,390. Assume the machine produces the following numbers of units each year: 965 units in 2018; 1,512 units in 2019; 1,482 units in 2020; 1,171 units in 2021; and 1,191 units in 2022. Ivanhoe has a December 31 year end. Ivanhoe estimates the machine's useful life will be five years or 6,371 units with a residual value of $86,390. Assume the machine prod Determine the cost of the machine. Cost of the machine 342320 Calculate the annual depreciation and total depreciation over the asset's life using: (Round the depreciation cost per unit to the nearest cent. Round answers to 0 decimal places, e.g. 5,275.) (1) Straight-line method Year Depreciable Cost Depreciation Expense Accumulated Depreciation Carrying Amount $ 308196 2018 & 255930 34124 34124 2019 255930 51186 85310 257010 2020 255930 51186 136496 205824 2021 255930 51186 187682 154638 2022 255930 51186 238868 103452 2023 255930 17062 255930 86390 (2) Double-diminishing-balance method Year Opening Carrying Amount Depreciation Expense Accumulated Depreciation Carrying Amount 2018 1 342320 $ 91285 $ 91285 2019 2020 2021 255930 86390 2022 86390 255930 86390 2023 86390 255930 86390 (3) Units-of-production method Year Units-of-production Depreciation Expense Accumulated Depreciation Carrying Amount 2018 $ ta 2019 2020 2021 2022 Which method causes net income to be lower in the early years of the asset's life? Double-Diminishing-Balance Method Units-of-Production Method Straight-Line Method