On January 3, 2013, the Soloman Toy Company purchased a machine for $24,000. The machine is expected to produce 200,000 units during its useful life of five years and have a salvage value of $2,000 at the end of that period. The machine produced 41,000 units in 2013, 38,000 units in 2014, and 40,000 units in 2015. Prepare a schedule showing the annual depreciation for 2013, 2014, and 2015 under the straight-line method and the units-of-output method.

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The Answer of On January 3, 2013, the Soloman Toy Company purchased a machine for $24,000. The machine is expected to produce 200,000 units during its useful life of five years and have a salvage value of $2,000 at the end of that period. The machine produced 41,000 units in 2013, 38,000 units in 2014, and 40,000 units in 2015. Prepare a schedule showing the annual depreciation for 2013, 2014, and 2015 under the straight-line method and the units-of-output method.

On January 3, 2013, the Soloman Toy Company Purchased a Machine