(c) Double declining-balance at twice the straight-line rate methods — January 2012 machine was installed Dunbar Factory cost 000 Its estimated residual

On January 1, 2012, a machine was installed at Dunbar Factory at a cost of $52,000. Its estimated residual value at the end of its estimated life of four years is $20,000. The machine is expected to produce 160,000 units with the following production schedule:

• 2012: 25,000 units

• 2013: 39,000 units

• 2014: 26,000 units

2015: 70,000 units

Complete depreciation schedules for

(a) Straight-line,

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End of Year	Cost of Equipment	Yearly depreciation Expense	Accumulated depreciation End of year	Book value End of year
2012	$52,000	$8,000	$8,000	$44,000
2013	52,000	8,000	16,000	36,000
2014	52,000	8,000	24,000	28,000
2015	52,000	8,000	32,000	20,000

End of Year	Cost of Equipment	Units Produced	Yearly depreciation Expense	Accumulated depreciation End of year	Book value End of year
2012	$52,000	25,000	$5,000	$5,000	$47,000
2013	52,000	39,000	7,800	12,800	39,200
2014	52,000	26,000	5,200	18,000	34,000
20154	52,000	70,000	14,000	32,000	20,000

(c) Double declining-balance at twice the straight-line rate methods — January 2012 machine was installed Dunbar Factory cost 000 Its estimated residual

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SOLUTION

(A)

(B)

(C)