The Gruman Company purchased a machine for $220,000 on January 2, 2004. It made the following estimates:

Service life ...... 5 years or 10,000 hours

Production ...... 200,000 units

Residual value .... $20,000

In 2007, the company uses the machine for 1,800 hours and produces 44,000 units.

Required

Compute the depreciation for 2007 under each of the following methods:

1. Straight-line

2. Hours worked

3. Units of output