PROBLEM # $1-(3$ parts$)$

Downing Company purchased a new machine on Sept $1,2020,$ at a cost of $$90,000.$ The company estimated that the machine has a residual value of $$6,000.$ The machine is expected to be used for $70,000$ working hours during its $8-$ year life.

Instructions:

Part $1$:

Use the Straight $-$Line method to calculate depreciation for: $2020,2021,2022$

Part $2$:

Use the Double Declining Balance method to calculate depreciation for: $2020,2021,2022.$

Part $3$:

Use the Units of Activity method and calculate depreciation for: $2020,2021$ and $2022$ assuming actual machine usage was $2,900$ hours, $8,050$ and $9,150$ respectively $($round to the nearest cent$)$