Phigam Steel purchases a machine on January 1 for 30 000
Phigam Steel purchases a machine on January 1 for $30,000. The machine has an estimated useful life of seven years, during which time it is expected to produce 114,800 units. Salvage value is estimated at $1,300. The machine produces 15,500 and 16,200 units in its first and second years of operation, respectively.
Required
Calculate depreciation expense for the machine's first two years using the straight-line, doubledeclining-balance, and units-of-activity methods of depreciation. Round values to the nearest dollar.
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