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 eBook 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>

Prepare a depreciation schedule for the following machine: the machine cost $43,000; it has an estimated residual value of $5,300 and expected life of 280,000 units. The units produced were:   Year Units Depreciation Book value at the end of each year Year 1             95,000 units     Year 2             80,000 units     Year 3             50,000 units     Year 4             35,500 units     Year 5 30,000 units       I need help working these problems out. Explain in detail please.

10. On January 1, 2021, Homestead Designs purchased some equipment for $19,600. The anticipated life of the equipment was five years and residual value was estimated to be $3,100. The machine was expected to produce 600,000 units. In January, 25,000 units were produced and production was doubled in February. The company uses the activity depreciation method. What is the amount of depreciation expense for the month of February? a. $637.50 b. $1,210.00 c. $2,354.00 d. $1,375.00

An injection moulding machine was purchased 2 years ago. The machine has been depreciated on a straight-line basis with $500 salvage value, and it has 6 years of remaining life. Its current book value is $2,600, and it can be sold for $3,000 at this time. Assume, for ease of calculation, that the annual depreciation expense is $350 per year. The firm is offered a replacement machine which has a cost of $8,000 an estimated useful life of 6 years, and an estimated salvage value of $800. This machine falls into the MACRS 5-year class (20%, 32%, 19%, 12%, 12%, 5%). The replacement machine would permit an output expansion, so sales would rise by $1,000 per year; even so, the new machine would cause operating expenses to decline by $1,500 per year. The machine would require that inventories be increased by $2,000 but accounts payable would simultaneously increase by $500. The firm’s marginal federal-plus-state tax rate is 40 percent, and its cost of capital is 15 percent. Should it replace…