A company purchased a machine on January 1 of the current year for $750,000. Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 20,000 hours, with a salvage value of $75,000).

During the machine's 5-year life its hourly usage was: 3,000; 4,000; 5,000; 5,000; and 3,000 hours.

Required:

1. Calculate the depreciation expense using the straight line and units of production for the 5 years.

2.Using the double-declining-balance method of depreciation, prepare a schedule showing depreciation amounts for the current year and the first 3 years (round answers to the nearest dollar). The company closes its books on December 31 of each year.