7. Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $945,000. The company estimated that the machine would have a salvage value of $45,000 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 90,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods and complete the depreciation schedules below. (a) Straight-line depreciation. (b) Activity method, assuming that machine usage was 21,000 hours for 2014; 29,000 hours for 2015; 13,000 hours for 2016; 12,000 hours for 2017; and 15,000 hours for 2018. (c) Sum-of-the-years'-digits. (d) Double-declining-balance. Straight-line Year 1 2 3 4 5 Book Value, Cost Beginning Depreciation Expense Accumulated Depreciation Book Value, Ending = depr exp. =Cost - A/D Year Cost Book Value, Beginning Depreciation Expense Accumulated Depreciation Book Value, Ending = depr exp. =Cost - A/D 2 3 4 5 Sum-of-the-Years' Digits Year 1 2 3 4 5 Cost Book Value, Beginning Depreciation Expense Accumulated Depreciation Book Value, Ending = depr exp. =Cost - A/D Double Declining Balance Year Cost Book Value, Beginning Depreciation Expense 1 2 3 4 5 Accumulated Depreciation = depr exp. Book Value, Ending =Cost - A/D