Depreciation A company purchased a machine on January 1 of the current year for $50,000. Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 25,000 hours with a salvage value of $5,000). During the machine's 5-year life its hourly usage was: 4,500; 4,000; 6,000; 6,000; and 4,500 hours respectively. Units-of Production Double- Declining- Balance Year Straight-Line Year 1 $ Year 2 Year 3 Year 4 Year 5 Total Prepare the journal entry to dispose of the machine on Jan. 1 of year 6 assuming it was sold for $3,000 cash