Scott Company Purchased a New Machine on January 1,2016,at a Cost

Essay

Scott Company purchased a new machine on January 1,2016,at a cost of $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 2016 was 70,000 units and during 2017 was 110,000 units.
Required: Determine the amount of depreciation expense to be recorded on the machine for the years 2016 and 2017 under each of the following methods:
1)Straight-line
2)Units of production
3)Double-declining balance