Chapter 11, Problem 11.23E

Disclosure of Property, Plant, and Equipment. Use the information in E11-13, part (a) to prepare the required footnote disclosure for Kurtis Koal Company, Inc.’s property, plant, and equipment for Years 1 and 2, including a statement of its accounting policy and a table with account balances.

E11-13. Depreciation Methods. Disposal. Kurtis Koal Company, Inc. purchased a new mining machine at a total cost of $900,000 on the first day of its fiscal year. The firm estimates that the machine has a useful life of 6 years or 6,000,000 tons of coal and a residual value of $60,000 at the end of its useful life. The following schedule indicates the actual number of tons of coal mined with the machine per year:

Year	Tons of Coal
1	700,000
2	1,400,000
3	1,600,000
4	1,000,000
5	750,000
6	550,000

Required

Prepare the depreciation schedules for the machine assuming that Kurtis Koal used the following methods (each case is independent):

1. a. Straight-line method.