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On January 1, 2021 Advantage Co. purchased a new machine for $4,500. The machine has a useful life of 5 years, and a residual value of $500. It is estimated that the machine will produce 4,000 units over its lifetime (1,500 units in 2021; 1,000 units in 2022; 500 units each remaining year). Advantage closes its books once a year, on December 31st.
problem 1: If Advantage uses the Double-Declining-Balance Method of depreciation, how much accumulated depreciation will Advantage recognize on its 12/31/2022 Balance Sheet in relation to this machine?
Option 1: $2,880
Option 2: $1,080
Option 3: $1,800
Option 4: $3,600
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