Florence Company acquired new equipment at cost of $75,000 at the beginning of the fiscal year. The equipment has an estimated life of 5 years or 150,000 hours and an estimated residual value of $6,000. Patrick Florence, the president, has requested information regarding alternative depreciation methods.

Determine the annual depreciation for each of the five years of estimated useful life of the equipment, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by:

1. the straight-line method
2. Prepare the journal entry to record the depreciation expense for year 1, using the straight-line method.
3. the declining-balance method (at twice the straight-line rate)
4. units-of-production method. The equipment was used 35,000 hours in year 1; 29,000 in year 2; 36,500 in year 3; 30,000 in year 4; and 19,500 in year 5.