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1.On January 1, 2013, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end of an estimated four year service life is expected to be $2,000. The company expects the machine to operate for 10,000 hours. Calculate depreciation expense for 2013 and 2014 using each of the following depreciation methods:
(a) Straight line, (b) Sum of the years digits, (c) Double declining balance, (d) Units of production using machine hours.
The machine operated for 2,200 and 3,000 hours in 2013 and 2014, respectively.
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