Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 23

Identify depreciation methods used Moyle Co. acquired a machine on January 1, 2016, at a cost of $2,400,000. The machine is expected to have a five-year useful life, with a salvage value of $150,000. The machine is capable of producing 300,000 units of product in its lifetime. Actual production was as follows: 60,000 units in 2016; 40,000 units in 2017; 80,000 units in 2018; 50,000 units in 2019; and 70,000 units in 2020.
Required:
Identify the depreciation method that would result in each of the following annual credit amount patterns to accumulated depreciation. If a declining-balance method is used, indicate the percentage (150% or 200%). (Hint: What do the amounts shown for each year represent?)