Question: On November 1 , 2 0 2 0 , Mountain Ski Corporation purchased a used snow grooming machine for $ 1 0 4 , 0

On November 1,2020, Mountain Ski Corporation purchased a used snow grooming machine for $104,000. Management estimated the machines useful life at three years or 3,000 hours and an $8,000 residual value. The company used the machine for 500 hours in the year ended December 31,2020,1,000 hours in the year ended December 31,2021,1,200 hours in the year ended December 31,2022, and 300 hours in the year ended December 31,2023. How much depreciation expense should Mountain Ski record in each of 2020,2021,2022, and 2023 under each depreciation method: (a) straight-line, (b) diminishing-balance using twice the straight-line rate, and (c) units-of-production? What is the total amount of depreciation recorded under each of these methods over this four-year period? Note: Partial-year depreciation is required Hours per Year Cost $104,000.002020500 Estimated residual value $8,000.0020211000 Estimated useful life (in years)320221200 Estimated useful life (in hours)3,00020233003000

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