Computing Depreciation under Alternative Methods Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $950,000. The estimated residual value was $50,000. Assume that the estimated useful life was five years and the estimated productive life of the machine was 300,000 units. Actual annual production was as follows: Year Units 1 70,000 2 67,000 3 50,000 4 73,000 5 40,000 page 446 Required: 1. Complete a separate depreciation schedule for each of the alternative methods. A sample schedule is shown below. Round your answers to the nearest dollar. a. Straight-line. b. Units-of-production (use two decimal places for the per unit output factor). c. Double-declining-balance. Method: Depreciation Expense Accumulated Depreciation Year Computation Net Book Value At acquisition 1 2 etc. 2. Assuming that the machine was used directly in the production of one of the products that the company manufactures and sells, what factors might managemen consider in selecting a preferable depreciation method in conformity with the expense recognition (matching) principle?

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing t…