Tippett Company acquired new machine tools for ten million CU. Their aggregate predicted useful lives is four years and their predicted aggregate residual value is one million CU.
Depreciation expense of this class of asset can be computed through one of five methods:
1. Straight-line
2. Double-declining balance (switching to a straight line method [over the remaining useful life] at the point where the straight-line rate [calculated over the remaining useful life] exceeds or equals the declining balance rate selected).
3. Sum of the years€™ digits
4. Units of output basis
5. Service hours basis.
Units of output and service hours for each year and in total are listed in the following tables.

=> Variation 1: Prepare a depreciation schedule comparing the first two depreciation methods, assuming that the acquisition date was 1 January X1.
=> Variation 2: Prepare a depreciation schedule comparing the five depreciation methods, assuming that the acquisition date was 1 January X1.

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Annual Total Units of output 15,000 Year 1 Year 2 Year 3 Year 4 4,000 2,000 2,000 Service hours 36,000 Year 1 Year 2 Year 3 Year 4 12,000 9,000 8,000