A machine which cost $250,000 is acquired on October 1, 20X1. Its estimated salvage value is $20,000 and its expected life is eight years. The machine is expected to produce 1,150,000 units over its useful life.

Instructions

Calculate depreciation expense for 20X1 and 20X2 by each of the following methods, showing the figures used.

1. Double-declining balance

1. Straight line

1. Units of activity with 125,500 produced in 20X1, and 375,250 produced in 20X2. Use 3 decimal places.