Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $920,000. The estimated residual value was $104,600. Assume that the estimated useful life was five years, and the estimated productive life of the machine was 302,000 units. Actual annual production was as follows:

Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $920,000. The estimated residual value was $104,600. Assume that the estimated useful life was five years, and the estimated productive life of the machine was 302,000 units. Actual annual production was as follows:
 

Year	Units
1	82,000
2	70,000
3	37,000
4	65,000
5	48,000

Required:

1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round your intermediate calculations.)

a. Straight-line.

b. Units-of-production.

here

Explanation:

1.

a. Straight-line:

Computation 

Year 1: ($920,000 − $104,600) × 1/5 = $163,080

Year 2: ($920,000 − $104,600) × 1/5 = $163,080

Year 3: ($920,000 − $104,600) × 1/5 = $163,080

Year 4: ($920,000 − $104,600) × 1/5 = $163,080

Year 5: ($920,000 − $104,600) × 1/5 = $163,080

b. Units-of-production: ($920,000 − $104,600) ÷ 302,000 = $2.70 per unit of output

Computation

Year 1: $2.70 × 82,000 units = $221,400

Year 2: $2.70 × 70,000 units = $189,000

Year 3: $2.70 × 37,000 units = $99,900

Year 4: $2.70 × 65,000 units = $175,500

Year 5: $2.70 × 48,000 units = $129,600

c. Double-declining-balance:

Computation

Year 1: ($920,000 − 0) × 2/5 = $368,000

Year 2: ($920,000 − $368,000) × 2/5 = $220,800

Year 3: ($920,000 − $588,800) × 2/5 = $132,480

Year 4: ($920,000 − $721,280) × 2/5 = $79,488

Year 5: ($920,000 − $800,768) × 2/5 = $47,693 (Too large) = $14,632