On October 1, 2011, the Allegheny Corporation purchased machinery for $114,000. The estimated service life of the machinery is 13 years and the estimated residual value is $5,000. The machine is expected to produce 228,000 units during its life.
Calculate depreciation for 2011 and 2012 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service.
(1) Straight Line
(2) Sum-of-the-years' digits
(3) Double-Declinging balance
(4) 150% Declining balance
(5) Units of Production