Reveille, Inc., purchased Machine #204 on April 1, 2013, and placed the machine into production on April 3, 2013. The following information is relevant to Machine #204:

Price.................................................................. $60,000

Freight-in costs...................................................... 2,500

Preparation and installation costs................................. 3,900

Labor costs during regular production operation............... 10,200

Credit terms......................................................... 2/10, n/30

Total productive output............................................. 138,500 units

The company expects that the machine could be used for 10 years, after which the salvage value would be zero. However, Reveille intends to use the machine only 8 years, after which it expects to be able to sell it for $9,800. The invoice for Machine #204 was paid April 10, 2013. The number of units produced in 2013 and 2014 were 23,200 and 29,000, respectively. Reveille computes depreciation to the nearest whole month.

Required:

Compute the depreciation for 2013 and 2014, using the following methods (round your answer to the nearest dollar):

1. Straight-line

2. Sum-of-the-years'-digits method

3. Double-declining-balance method

4. Activity method based on units of production

(Originally contributed by Norma C. Powell)