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Question - Metlock, Inc. purchased a new machine on October 1, 2020, at a cost of $122,000. The company estimated that the machine will have a salvage value of $14,000. The machine is expected to be used for 10,000 working hours during its 4-year life.
Required -
Compute the depreciation expense under straight-line method for 2020.
Compute the depreciation expense under units-of-activity for 2020, assuming machine usage was 1,910 hours.
Compute the depreciation expense under declining-balance using double the straight-line rate for 2020 and 2021.
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