Identify depreciation methods used Moyle Co. acquired a machine on January 1, 2010, at a cost of $320,000. The machine is expected to have a five-year useful life, with a salvage value of $20,000. The machine is capable of producing 300,000 units of product in its lifetime. Actual production was as follows: 60,000 units in 2010; 40,000 units in 2011; 80,000 units in 2012; 50,000 units in 2013; and 70,000 units in 2014.
Required:
Identify the depreciation method that would result in each of the following annual credit amount patterns to accumulated depreciation. If a declining-balance method is used, indicate the percentage (150% or 200%). (Hint: What do the amounts shown for each year represent?)
a. | Accumulated Depreciation | |
|
| 60,000 12/31/10 |
|
| 40,000 12/31/11 |
|
| 80,000 12/31/12 |
|
| 50,000 12/31/13 |
|
| 70,000 12/31/14 |
b. | Accumulated Depreciation | |
|
| 96,000 12/31/10 |
|
| 67,200 12/31/11 |
|
| 47,020 12/31/12 |
|
| 32,928 12/31/13 |
|
| 23,050 12/31/14 |
c. | Accumulated Depreciation | |
|
| 128,000 12/31/10 |
|
| 76,800 12/31/11 |
|
| 46,080 12/31/12 |
|
| 27,648 12/31/13 |
|
| 16,588 12/31/14 |
d. | Accumulated Depreciation | |
|
| 60,000 12/31/10 |
|
| 60,000 12/31/11 |
|
| 60,000 12/31/12 |
|
| 60,000 12/31/13 |
|
| 60,000 12/31/14 |
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