Rottino Company purchased a new machine on October 1, 2022, 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. 

Instructions

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

a. Straight-line for 2022.

b. Units-of-activity for 2022, assuming machine usage was 1,700 hours.

c. Declining-balance using double the straight-line rate for 2022 and 2023.