Question: on october 1 2018 the allegheny corporation purchased machinery for...

On October 1, 2018, the Allegheny Corporation purchased machinery for $299,000. The estimated service life of the machinery is 10 years and the estimated residual value is $2,000. The machine is expected to produce 540,000 units during its life.

Required: Calculate depreciation for 2018 and 2019 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service.

1. Straight line.

2. Sum-of-the-years’-digits.

3. Double-declining balance.

4. One hundred fifty percent declining balance.

5. Units of production (units produced in 2018, 27,000; units produced in 2019, 42,000).