
(a)
Units-of-Activity Method: Under the units-of-activity method, the depreciation expense amount is calculated based on the units produced by the asset during the period.
Declining-Balance Method: Under the declining balance method, the depreciation is charged at the same rate every year but on the declined balance or the book value of the asset in the beginning of the year.
To Record: For machine A,
(2)
To Record: Journal entry of annual depreciation on December 31, 2017.
(b)
(1)
The amount of depreciation of machine B in each year under Straight-line method
(2)
The amount of depreciation of machine B in each year under Declining-balance method
(3)
The amount of depreciation of machine B in each year under Units-of-activity method
(c)
The method which will report highest amount of depreciation on machine B in 2017, in 2020, and over period of 4 years.

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Chapter 10 Solutions
Accounting Principles - Standalone book
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