Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is December 31.

Instructions

Compute the depreciation expense under the following methods. Each of the following should be considered unrelated.

a. Straight-line depreciation for 2025.

b. Activity method for 2025, assuming that machine usage was 800 hours.

c. Sum-of-the-years’-digits for 2026.

d. Double-declining-balance for 2026.