A New Machine Is Expected to Produce 600,000 Units of Product

question 18

Essay

A new machine is expected to produce 600,000 units of product during its 8-year useful life.The machine cost $1,800,000 cash and it is estimated to have a $60,000 salvage value.
1.Calculate the depreciation if the machine produces 70,000 units of product during its first year,using the units-of-production method.
2.Calculate the depreciation on the machine using the double-declining-balance method.
3.Calculate the depreciation on the machine using the straight-line method.

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