please answer all
Crane Limited purchased a machine on account on April 2, 2018,at an invoice price of $360,090. On April 4, it paid $1,850 fordelivery of the machine. A one-year, $4,250 insurance policy on themachine was purchased on April 5. On April 18, Crane paid $8,280for installation and testing of the machine. The machine was readyfor use on April 30.
Crane estimates the machine’s useful life will be five years or6,018 units with a residual value of $85,700. Assume the machineproduces the following numbers of units each year: 859 units in2018; 1,504 units in 2019; 1,312 units in 2020; 1,267 units in2021; and 1,076 units in 2022. Crane has a December 31 yearend.
1. determine the cost of the machine
2. calculate
| DepreciableCost | | DepreciationExpense | | AccumulatedDepreciation | | CarryingAmount |
using a. straight line method, b. double diminishing method, c.units of production method
3. Which method causes net income to be lower in the early yearsof the asset’s life?
