Depreciation Methods (Show all steps of the work)

Numo Company purchased a new machine on October 1, 2021, at a cost of $145,000.

The company estimated that the machine will have a salvage value of $25,000.

The machine is expected to be used for 20,000 working hours during its 5-year life.

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

(a) Straight-line for 2020.

(b) Units-of-activity for 2021, assuming machine

usage was 3,400 hours.

(c)Declining-balance using double the straight-line rate for 2021 and 2022.