Question
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:
00:58:151. Complete a depreciation schedule for each of the alternative methods.
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
eBook2
2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more
efficiently under this depreciation method?
Complete this question by entering your answers in the tabs below.
Req 1AReq 1 Req 1C Req 2AReq 2B
Which method will result in the highest net income in year 2?
0 |Units-of-production
O Double-declining-balance
Straight-line
Req 2B
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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: 00:58:151. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. eBook2 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Complete this question by entering your answers in the tabs below. Req 1AReq 1 Req 1C Req 2AReq 2B Which method will result in the highest net income in year 2? 0 |Units-of-production O Double-declining-balance Straight-line Req 2B
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