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The cost of equipment purchased by Splish, Inc., on June 1, 2020, is $107,100. It is estimated that the machine will have a $6,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 50,400, and its total production is estimated at 672,000 units. During 2020, the machine was operated 7,500 hours and produced 68,700 units. During 2021, the machine was operated 6,870 hours and produced 60,000 units.
problem 1: Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021
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