Complete this problem on depreciation
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Cost of the equipment is $21,000
Salvage (residual) value is 1,000
Life of the machine in years is 4 years
Life of the machine in hours is 100,000 hours
A. Calculate Straight line Depreciation Expense for years 1 and 2
B. Calculate Double Declining Depreciation Expense for years 1 and 2
C. Caclulate depreciation Expense using Units of production for year 1 (10,000 hours were used) and year 2 (15,000 hours were used)