Depreciation Example 20 points . S Company purchased a fabricating machine on January 1, 2006 at net cost of $200,000 Estimates a 4 year useful life Salvage value = $60,000 Fiscal year ends December 31 Estimate machine hours 25,000 Actual machine hours Year Actual Machine Hours 2006 6,000 2007 8,000 2008 5,000 2009 7,000 26,000 Compute Depreciation Expense for 2006 through 2009 using the following methods: a. Sum of the years digits b. Double declining balance (Complete the schedule below) Sum of Years Digits Year 2006 2007 2008 2009 Depreciable Base Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value Double Declining Balance Year Book Value (Beginning) Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value (Ending) 2006 2007 2008 2009 If an amount is $0, indicate $0-DO NOT LEAVE DEPRECIATION EXPENSE BOX BLANK