Plastic Works Corporation bought a machine at the beginning of the year at a cost of $12,000. The estimated useful life was five years, and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was: year 1, 3,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 1,000 units; and year 5, 1,000 units.
(b)Units-of-production:
|
Income Statement
|
Balance Sheet
|
| Year |
Depreciation Expense
|
Cost |
Accumulated Depreciation |
Book Value |
| At acquisition |
$ |
|
| 1 |
$ |
|
$ |
|
$ |
|
|
|
| 2 |
|
|
|
|
|
|
|
|
| 3 |
|
|
|
|
|
|
|
|
| 4 |
|
|
|
|
|
|
|
|
| 5 |
|
|
|
|
|
|
|
|
|
(c)Double-declining-balance
|
Income Statement
|
Balance Sheet
|
| Year |
Depreciation Expense
|
Cost |
Accumulated Depreciation |
Book Value |
| At acquisition |
$ |
|
| 1 |
$ |
|
$ |
|
$ |
|
|
|
| 2 |
|
|
|
|
|
|
|
|
| 3 |
|
|
|
|
|
|
|
|
| 4 |
|
|
|
|
|
|
|
|
|