1. UMET Co. purchased equipment on March 1, 2020, at a cost of $600,000. The equipment is expected to have a service life of ten years, or 50,000 hours, and a residual value of $40,000. During 2020, the equipment was operated for 4,000 hours, and during 2021 it was operated for 7,000 hours.

Required: Determine the depreciation expense and accumulated depreciation for this machine in 2020 and 2021 under each of the following depreciation methods:

2020 2021

a. straight line

- depreciation expense __________ __________

- accumulated depreciation __________ __________

b. hours run - depreciation expense __________ __________

- accumulated depreciation __________ __________

c. double declining balance - depreciation expense __________ __________

- accumulated depreciation __________ __________

d. sum of the years' digits - depreciation expense __________ __________

- accumulated depreciation __________ __________

NOTE: SHOW ALL COMPUTATIONS (you will not receive points if you do not show the equations and how you arrive at your results)