Depreciation Methods}

On January 1, 2017, Loeffler Company acquired a machine at a cost of \(\$ 200,000\). Loeffler estimates that it will use the machine for four years or 8,000 machine hours. It estimates that after four years the machine can be sold for \(\$ 20,000\). Loeffler uses the machine for 2,100 and 1,800 machine hours in 2017 and 2018, respectively.

\section*{Required:}

Compute depreciation expense for 2017 and 2018 using the (1) straight-line, (2) doubledeclining-balance, and (3) units-of-production methods of depreciation.

\section*{OBJECTIVE 5 Brief Exercise