Group Exercise Chapters 8, 9, 10, 11 and 15 Problem 1 Collins Corporation purchased a new factory machine on April 1, 2020 for $30,000. The estimated useful life is 7 years with a $2,000 salvage value. Management estimates that the new machine will produce 14,000 over its life. 1 Compute depreciation expense for 2020 using the straight-line method (Note that the asset was purchased on April 1, 2020) 2 Compute depreciation expense under units-of-activity for 2020 if the machine produces 3,500 units in 2020. 3 Compute depreciation expense for 2021 using the straight-line method