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Waterway Manufacturing purchased a machine on January 1, 2017 for use in its factory. Waterway...

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Accounting

Waterway Manufacturing purchased a machine on January 1, 2017 for use in its factory. Waterway paid $130,000 for the machine and estimated that it had a useful life of 4 years, at the end of which time the machine was expected to have a residual value of $20,000. During its life, the machine was expected to produce 220,000 units. During 2017, the machine produced 22,100 units, and produced 33,100 in 2018. The machine was subject to a 20% CCA rate, and Waterways year-end was December 31.

a) Calculate the annual depreciation amount for 2017 and 2018 under the straight-line method.

b) Calculate the annual depreciation amount for 2017 and 2018 under the activity method.

c) Calculate the annual depreciation amount for 2017 and 2018 under the double-declining balance method.

d) Calculate the annual depreciation amount for 2017 and 2018 under the capital cost allowance method.

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