Macon Assembly Company purchased a machine on January 2, 20X3, by paying cash of $85,000. The machine has an estimated useful life of five years (or the production of 200,000

Macon Assembly Company purchased a machine on January 2, 20X3, by paying cash of $85,000. The machine has an estimated useful life of five years (or the production of 200,000 units) and an estimated residual value of $5,000. Required: 1. Determine depreciation expense (to the nearest dollar) for each year of the machine’s useful life under (a). straight-line depreciation; and (b). the declining-balance method with a 200% acceleration rate. 2. What is the book value of the machine after three years with the declining-balance method and a 200% acceleration rate? 3. What is the book value of the machinery after three years with straight-line depreciation. 4. If the machine was used to produce and sell 48,000 units in 20X3, what would the depreciation expense be under the units of production method?


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