Paper Printing Company purchased a copy machine for $65,000 on January 1, 2010. The copy machine had an estimated useful life of five years or 1,000,000 copies. Paper Printing estimated the copy machine’s salvage value to be $5,000. The company made 250,000 copies in 2010 and 190,000 copies in 2011.

1. Compute the depreciation expense for 2010 and 2011, first using the straight-line method, then the activity method.

2. Which method portrays the actual use of this asset more accurately? Explain your answer.