1. Tavleen Ltd purchased a machine for $400,000. Tavleen Ltd, wants the service life to be 5 years, useful life is expected to be 200,000 hours. Salvage value is expected to be $30,000. After 5 years of use the machine was disposed, the actual hours of use are:

Year one: 50,000 hours

Year two: 40,000 hours

Year three: 35,000 hours

Year four: 45,000 hours

Year five: 30,000 hours

Required: Prepare the depreciation schedule for the machine for five years. Find the depreciation expense and the book value of the machine for each of the five years using a. Units of activity (2 marks)