Basic information relating to a new machine purchased by Gotham Company is presented in E9.5. 

Instructions 

Using the facts presented in E9.5, compute depreciation using the following methods in the year indicated. 

a. Declining-balance using double the straight-line rate for 2022 and 2023. 

b. Units-of-activity for 2022, assuming machine usage was 500 hours. (Round depreciation per unit to the nearest cent.) 

Data From E 9.5

Gotham Company purchased a new machine on October 1, 2022, at a cost of $90,000. The company estimated that the machine has a salvage value of $8,100. The machine is expected to be used for 70,000 working hours during its 10-year life.