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2. Equipment purchased for $200,000 on January 1st is expected to have a useful life of 5 years or 100,000 machine hours. Its residual value
2. Equipment purchased for $200,000 on January 1st is expected to have a useful life of 5 years or 100,000 machine hours. Its residual value is $10,000. Compute the depreciation expense for both Year 1 and for Year 2, (I do NOT need the accumulated depreciation, just the expense amount for each year). The company calculates using each of the following depreciation methods: a. Straight-Line b. Units-of-Production (22,000 hours for Year 1; 26,000 hours for Year 2) c. Double-Declining-Balance
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