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PlasticWorks Corporation bought a machine at the beginning of the year at a cost of...

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Accounting

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PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $16,200. The estimated useful life was five years, and the residual value was $2,600. Assume that the estimated productive life of the machine is 13,600 units. Expected annual production was: year 1, 4,200 units; year 2, 4,200 units; year 3, 2,600 units; year 4, 1,360 units; and year 5, 1,240 units. Required: Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount.) a. Straight-line. Income Statement Depreciation Expense Balance Sheet Accumulated Depreciation Year Cost Book Value At acquisition 1 2 3 4 5 b. Units-of-production. Income Statement Depreciation Expense Balance Sheet Accumulated Depreciation Year Cost Book Value At acquisition 1 2 3 4 5 c. Double-declining-balance. Balance Sheet Income Statement Depreciation Expense Year Cost Accumulated Depreciation Book Value At acquisition 1 2 3 2-a. Which method will result in the highest net Income In year 2? Straight-line Double-declining-balance Units-of-production 2-b. Does this higher net income mean the machine was used more efficiently under this depreciation method? No Yes

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