Depreciation Methods Early in 2000, Cycle Corporation paid $180,000 to purchase equipment with an expected life of 4 years. Estimated salvage value of the equipment is $10,000. The machine is expected to be used a total of 18,000 hours, as follows: 2000 3,200; 2001 4,800;

2002 5,600; and 2003 4,400.

The controller of Cycle Corporation has requested your assistance in determining the annual depreciation expense and the balance in accumulated depreciation at the end of each of the years using the following depreciation methods:

a. Straight-line

b. Double-declining-balance

c. Activity-based