Depreciation Method

Berkshire Corporation purchased a copying machine for $9,800 on January 1, 2013. The machine's residual value was $1,175 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies the first year and 462,000 the second year.

Required:

1. Compute depreciation expense for 2013 and 2014 using the:

a. Straight-line method.

Depreciation expense: $ per year

b. Double-declining-balance method.

	Depreciation Expense
2013	$
2014	$

c. Units-of-production method. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

	Depreciation Expense
2013	$
2014	$

2. For each depreciation method, what is the book value of the machine at the end of 2013? At the end of 2014? If required, round your answers to the nearest whole dollar.

		2013	2014
a.	Straight-line method	$	$
b.	Double-declining-balance method	$	$
c.	Units-of-production method	$	$