1. A three-year-old machine has a cost of $17,200, an estimated residual value of $1,200, and an estimated useful life of 32,000 machine hours. The company uses units-of-production depreciation and ran the machine 3,400 hours in year 1; 7,750 hours in year 2; and 7,900 hours in year 3. Calculate the net book value at the end of the third year.

2. A three-year-old machine has a cost of $63,000, an estimated residual value of $5,800, and an estimated useful life of five years. The company uses double-declining-balance depreciation. Calculate the net book value at the end of each year.

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