E8-11 Computing Depreciation and Book Value for Two Years Using Alternative Depreciation Methods and Interpreting...
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E8-11 Computing Depreciation and Book Value for Two Years Using Alternative Depreciation Methods and Interpreting the Impact on Cash Flows Schrade Company bought a machine for $96,000 cash. The estimated useful life was four years, and the estimated residual value was $6,000. Assume that the estimated useful life in productive units is 120,000 . Units actually produced were 43,000 in year 1 and 45,000 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule. (Do not round your intermediate calculations.) 2a. Which method would result in the lowest EPS for year 1 ? 2b. Which method would result in the lowest EPS for year 2 ? 2c. Which method would result in the highest amount of cash outflows in year 1
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