Rottino Company purchased a new machine on October 1, 2015, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000.
The machine is expected to be used for 10,000 working hours during its 5-year life.
Compute the depreciation expense under the following methods for the year indicated.
(a) Straight-line for 2015.
(b) Units-of-activity for 2015, assuming machine usage was 1,700 hours.
(c) Declining-balance using double the straight-line rate for 2015 and 2016.