A machine is purchased at the beginning of 2011 for $42,000. Its estimated life is eight years. Freight costs on the machine are $3,000. Installation costs are $1,600. The machine is estimated to have a residual value of $600 and a useful life of 32,000 hours. It was used 3,000 hours in 2011.

1. What is the cost of the machine for accounting purposes?

2. Compute the depreciation charge for 2011 using

(a) The straight-line method and

(b) The service-hours method.