Hello i need help with this exercise in the straight line method. Thank You

Ex. 1 (Ch 10)

The Hartley Clinic purchased a new surgical laser for $90,000. The estimated salvage value is $5,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,200 hours in year 2; 2,400 hours in year 3; 1,800 hours in year 4; 2,000 hours in year 5.

Instructions

(a)Compute the annual depreciation for each of the five years under each of the following methods:

(1)straight-line.

(2)units-of-activity.

1-) Straight-line method

Depreciable Cost: $90,000 - $5,000 = $85,000

Depreciation Expense: $85,000= 17,000 per year

5 years

2-) Units-of-activity Method

Depreciable cost:$90,000- $5,000 = $85,000

Depreciation Expense: $85,000/10,000 per hour= $8.50 per hour

YearDepreciation ExpenseTotal Depreciation Expense Accumulated Depreciation

1$8.501,600 $13,600

28.502,20018,700

38.502,40020,400

48.501,80015,300

58.50 2,00017,000

Total 10,000 hours$85,000