Sneetch Inc

Essay

Sneetch Inc.purchased a star-making machine on January 1,2014.The cost of the machine was $17,000.Its estimated residual value was $2,000 at the end of an estimated 10-year life.The company expects to produce a total of 20,000 units.
a.Calculate depreciation expense for 2014 and 2015 using the straight-line method.
b.Calculate depreciation expense for 2014 and 2015 using the double-declining balance method.
c.Calculate the depreciation expense for 2014 and 2015 using the units-of-production method.The company produced 1,500 units in 2014 and 2,200 units in 2015.