Oteda purchased a machine on January 1 for $ 11,500. Oteda expected the machine will be used for 4 years and will have a residual value of $ 2,500. Oteda expects the machine to be used for 25,000 hours: first year, 5,200 hours; second year, 7,500 hours; third year, 8,600 hours; and the fourth year, 3,700 hours.

Requirement:

Compute the annual depreciation amount using three different depreciation methods by filling in the following table:

Transcribed Image Text:

Straight-Line Units-of-Production Double Declining Year 1 Year 2 Year 3 Year 4 Total