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Question - Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The equipment is expected to have a service life of ten years, or 40,000 hours, and a residual value of $70,000. During 2019, the equipment was operated for 5,000 hours, and during 2020, it was operated for 7,000 hours.
Required - Compute the depreciation expense for this machine in 2019 and 2020 under each of the following depreciation methods:
a. Straight-line method
b. Activity method (hours)
c. Double-declining-balance method
d. Sum-of-the-years'-digits method
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