The following information pertains to a machine purchased by Bakersfield Company on January 1, 2010.
|
Purchase price
|
$ 63,000
|
|
Delivery cost
|
$ 2,000
|
|
Installation charge
|
$ 3,000
|
|
Estimated useful life
|
8 years
|
|
Estimated units the machine will produce
|
130,000
|
|
Estimated salvage value
|
$ 3,000
|
The machine produced 14,400 units during 2010 and 17,000 units during 2011.
Required
Determine the depreciation expense Bakersfield would report for 2010 and 2011 using each of the following methods.
a. Straight-line.
b. Double-declining-balance.
c. Units-of-production.