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Non-Current Operating Assets

Non-Current Operating Assets

Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Atwater Manufacturing Company purchased a new machine that was specially 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: the straight-line method, the productive-output method, and the sum-of-the-years’-digits method.

  • Describe each of the 3 methods.
  • Discuss separately the arguments for and against each of the proposed methods from both the theoretical and practical viewpoints.
  • Which would you select?