Rottino Company purchased a new machine on October 1, 2017, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Instructions

Compute the depreciation expense under the following methods for the year indicated.

(a) Straight-line for 2017.

(b) Units-of-activity for 2017, assuming machine usage was 1,700 hours.

(c) Declining-balance using double the straight-line rate for 2017 and 2018.