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Plastic Works Corporation bought a machine at the beginning of the year at a cost of $12,000. The estimated useful life was five years, and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was: year 1, 3,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 1,000 units; and year 5, 1,000 units.
(b)Units-of-production:
Income Statement
Balance Sheet
Depreciation Expense
(c)Double-declining-balance
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Provide an assessment of the accountant's ethical responsibilities in the case situation.
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