Depreciation Computations—Four Methods Maserati Corporation purchased a new machine for its assembly process on August 1, 2010. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year-end is December 31. Compute the Depreciation expense under the following methods. Each of the following should be considered unrelated.

(a) Straight-line Depreciation for 2010.

(b) Activity method for 2010, assuming that machine usage was 800 hours.

(c) Sum-of-the-years’-digits for 2011.

(d) Double-declining-balance for 2011.