Comparing depreciation methods

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A custom-built production machine is being depreciated using the units-of-production method. The machine costs $65,000 and is expected to produce 1.5 million units, after which it will have a $5000 salvage value. In the first 2 years of operation the machine was used to produce 140,000 units each year. In the 3rd and 4th years, production went up to 400,000 units. After that time annual production returned to 135,000 units. Use a spreadsheet to develop a depreciation schedule showing the machine's depreciation allowance and book value over its depreciable life. Comparing Depreciation Methods.

Reference no: EM131809812

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