
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $39,000. The estimated useful life was five
years and the residual value was $4,000. Assume that the estimated productive life of the machine is 20,000 units. Expected annual
production was year 1, 4,600 units; year 2, 5,600 units; year 3, 4,600 units; year 4, 4,600 units; and year 5, 600 units
Required
00-59151. Complete a depreciation schedule for each of the alternative methods.
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more
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efficiently under this depreciation method?
Complete this question by entering your answers in the tabs below.
Req 1AReq 1B
Req 1C
Req 2AReq 2B
Complete a depreciation schedule for Straight-line method. (Do not round intermediate calculations.)
Income
Statement
Balance Sheet
Depreciation
Expense
Year
Cost
Depreciation Bok Value
At acquisition
2
3
4
5
Req 1A
Req 1B>
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