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Question - Phigam Steel purchases a machine on January 1 for $30,000. The machine has an estimated useful life of seven years, during which time it is expected to produce 114,800 units. Salvage value is estimated at $1,300. The machine produces 15,500 and 16,200 units in its first and second years of operation, respectively.
Required: Calculate depreciation expense for the machine using the straight-line method of depreciation.
Calculate depreciation expense for the machine's first two years using the double-declining-balance method of depreciation. Do not round any intermediate amounts used for calculations. Round final answers to the nearest dollar.
Calculate depreciation expense for the machine's first two years using the units-of-activity method of depreciation.
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