A company purchased equipment system for $325,000 on August 5,2007. The company expects the equipment to last for eight years or 60,000 hours of operation, with an estimated salvage value of $25,000. During 2007 the equipment was in operations for 8,000 hours, while in 2008 the equipment was in operations for 8,700 hours. Compute the depreciation expense relating to the equipment for 2007 and 2008 using the following depreciation methods :

(a.) Straight-line.

(b.) Double-declining-balance.

(c.) Units-of-production.

(d.) Modified Accelerated Cost Recovery System (MACRS) - Assume that the equipment is classified as 5 year property and that the percentages for 2007 is 19o/o and2008 is 32%.

PLEASE INCLUDE CALCULATIONS