Indy Co purchased machinery for $ on March X The machine has an estimated life of years and salvage value of $ Estimated output is machine hours. The machine was used hours in X and hours in X

Round all answers to the nearest dollar

Calculate depreciation expense and book value of the machine for X and X using:

a Straightline method

b Unitsofproduction method

c Doubledeclining balance method

Now, assume, that same machine was instead purchased originally on January X During X Indy determines that the useful life of the machine will be years rather than years and the salvage value will be $ Calculate revised depreciation for X assuming Indy uses straightline depreciation.

Answer the following questions:

a Which depreciation method results in the greatest amount of expense over an assets life?

b Which depreciation method results in the greatest expense in the early years of an assets life?