Xanadu A/S purchased a new machine on October 1, 2025, at a cost of €96,000. The company estimated that the machine will have a residual value of €12,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Instructions Compute the depreciation expense under the following methods for the year indicated.

a. Straight-line for 2025.

b. Units-of-activity for 2025, assuming machine usage was 1,700 hours.

c. Declining-balance using double the straight-line rate for 2025 and 2026.

Compute depreciation using different methods.