Cheetah Copy purchased a new copy machine. The new machine cost $126,000 including installation. The company estimates the equipment will have a residual value of $31,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:

Year: Hours Used

Year 1: 2,000

Year 2: 2,000

Year 3: 2,000

Year 4: 3,200

Required:

1.Form a depreciation schedule for four years using the straight-line method.(Do not round your intermediate calculations.)

2.Form a depreciation schedule for four years using the double-declining-balance method. (Hint: The asset will be depreciated in only two years.)(Do not round your intermediate calculations.)

3.Form a depreciation schedule for four years using the activity-based method.(Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.)