Reference no: EM131572327

On January 2, 2012, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $218,700 and was estimated to have a useful life of six years or 700,000 platings, after which it could be sold for $23,400.

Required

a. Calculate each year's depreciation expense for the period 2012-2017 under each of the following depreciation methods:

1. Straight-line
2. Double-declining balance.
3. Units-of-production. (Assume annual production in platings of

• 140,000
• 180,000
• 100,000
• 110,000
• 80,000
• 90,000

b. Assume that the machine was purchased on September1, 2012. Calculate each year's depreciation expense for the period 2012-2018 under each of the following depreciation methods;

1. Straight-line
2. Double-declining balance.