On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost \(\$ 120,000\), and its estimated useful life was four years or 920,000 cuttings, after which it could be sold for \(\$ 5,000\).

Required

a. Calculate each year's depreciation expense for the period 2018-2021 under each of the following depreciation methods:

1. Straight-line.

2. Double-declining balance.

3. Units-of-production. 

Assume annual production in cuttings of 200,\(000 ; 350,000 ; 260,000\); and 110,000 .

b. Assume that the machine was purchased on July 1, 2018. Calculate each year's depreciation expense for the period 2018-2022 under each of the following depreciation methods:

1. Straight-line.

2. Double-declining balance.