Rottino Company purchased a new machine on October 1, 2024, at a cost of $150,000. The company estimated that the machine will have a residual value of $12,000. The machine is expected to be used for 10,000 working hours during its five-year life. Rottino Company’s year-end is December 31. 

Instructions 

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

a. Straight-line for 2024. 

b. Units-of-production for 2024, assuming machine usage was 1,700 hours. 

c. Diminishing-balance using double the straight-line rate for 2024 and 2025.