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Coca- Cola Company purchased a new machine on October 1, 2014, at a cost of $150,000. The company estimated that the machine will have a

Coca- Cola Company purchased a new machine on October 1, 2014, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Compute the depreciation expense under the following methods for the year indicated.

a. Straight-line for 2014

b.Units-of-activity for 2014, assuming machine usage was 1,700 hours.

c. Declining -balance using double the straight-line rate for 2014 and 2015.

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