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Which depreciation method makes more sense for liam

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Reference no: EM132822110

Problem 1: Liam is struggling to determine which deprecation method he should use for his new silk-screening machine. He expects sales to increase over the next five years. He also expects (hopes) that in two years he will need to buy a second silk-screening machine to keep up with the demand for products of his growing company. Which depreciation method makes more sense for Liam?

1. Higher expenses in the first few years, or keeping expenses consistent over time?

2. Or would it be better for him to not think in terms of time, but rather in the usage of the machine?I need help in explaining the depreciation method of unit of production.

Reference no: EM132822110

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