E10-6 Swinton Company purchased a new machine on October 1, 2012, at a cost of $120,000. 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. Instructions Compute the depreciation expense under the following methods for the year indicated. (a) Straight-line for 2012 (b) Units-of-activity for 2012, assuming machine usage was 1,700 hours