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(Solved) P4-4A. Calculate and analyze depreciation under alternative methods . (LO 2) Peps Co. purchased a...


P4-4A. Calculate  and  analyze  depreciation  under alternative  methods. (LO 2) Peps Co. purchased a new machine at the beginning of 2006 for $6,400. The company ex­ pects the machine to last for 5 years and have a salvage value of $400. The estimated pro­ ductive life of the machine is  100,000 units. Yearly  production:  in 2006-28,000 units; in 2007-22,000 units ; in 2008-16,000 units ; in 2009-14,000 units; in 2010---20 ,000 units. Required a.   Calculate the depreciation expense for each year of the 5-year life of the machine using 1.    Straight-line  method 2.    Double-declining  balance method  (Round to the nearest   dollar.) 3.    Activity  method using units b.    For each method , give the amount of accumulated depreciation that would be shown on the balance sheet at the end of each   year. c.    Calculate  the book  value of the machine at the end of each year for each   method .  

 


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