On July 1, 2019, Wyoming Systems Company Purchased for $81,000

Essay

On July 1, 2019, Wyoming Systems Company purchased for $81,000 a new machine that has an estimated useful life of six years (or 300,000 cutting operations), after which the expected salvage value is $5,400.
Under each of the following depreciation methods, calculate the depreciation expense for 2020.
Required:
a. Straight-line depreciation
b. Double declining-balance depreciation
c. Units-of-production depreciation, if 55,000 cutting operations were made in 2020