A Company Purchased a Machine on January 1 of the Current

Essay

A company purchased a machine on January 1 of the current year for $750,000. Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 20,000 hours, with a salvage value of $75,000) using each of the below-mentioned methods. During the machine's 5-year life its hourly usage was: 3,000; 4,000; 5,000; 5,000; and 3,000 hours.
$$\begin{array} { l | l | l | l } & \text { Straight-line } & \text { Uhits-of-production } & \text { Double-declining balance } \\\hline \text { Year I } & & & \\\hline \text { Year 2 } & & & \\\hline \text { Yaar 3 } & & & \\\hline \text { Year 4 } & & & \\\hline \text { Year 5 } & & & \\\hline \text { Totals } & & &\end{array}$$