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Calculate the amount of depreciation expence each year On January 1, 2022, Ayayai Company purchased the following two machines for use in its production process.

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On January 1, 2022, Ayayai Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $40,000. Related expenditures also paid in cash included: sales tax $2,250, shipping costs $100, insurance during shipping $70, installation and testing costs $100, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Ayayai estimates that the useful life of the machine is 5 years with a $4,400 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B: The recorded cost of this machine was $180,000. Ayayai estimates that the useful life of the machine is 4 years with a $10,000 saluage value remaining at the end of that time period. Calculate the amount of depreciation expense that Ayayai should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.8. 2,125.) (1) Ayayai uses the straight-line method of depreciation. (2) Ayayai uses the declining-balance method. The rate used is twice the straight-line rate. (3) Ayayai uses the units-of-activity method and estimates that the useful life of the machine is 97,000 units. Actual usage is as follows: 2022,42,500 units; 2023, 29,000 units: 2024,15,500 units; 2025, 10,000 units

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