Which Depreciation Method Should We Use?
Atwater Manufacturing Company purchased a new machine especially built to perform one particular function on the assembly line. A difference of opinion has arisen as to the method of depreciation to be used in connection with this machine. Three methods are now being considered:
(a) The straight-line method
(b) The productive-output method
(c) The sum-of-the-years'-digits method
List separately the arguments for and against each of the proposed methods from both the theoretical and practical viewpoints.