On January 1, Year 1, Scott Company Purchased a New

Essay

On January 1, Year 1, Scott Company purchased a new machine for $220,000. The machine is expected to have an eight-year life and a $20,000 salvage value. The machine is expected to produce 800,000 finished products during its eight-year life. Production during Year 1 was 70,000 units and during Year 2 was 110,000 units.
Required:
Determine the amount of depreciation expense to be recorded on the machine for Year 1 and Year 2, respectively, using each of the following methods:1)Straight-line2)Units-of-production3)Double-declining-balance