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Honesty Manufacturing purchased a machine on 1 July, 2017. The following financial information has been collected to calculate the depreciation at 30 June 2019: Cost

Honesty Manufacturing purchased a machine on 1 July, 2017. The following financial information has been collected to calculate the depreciation at 30 June 2019:

Cost

$58,500

Expected salvage value

$1,000

Estimated useful life in years

5

Estimated useful life in hours

200,000

Hours used in 2020 is:

48,000

Required:

Calculate the depreciation expense of the machine for the year ended 30 June 2019 using:

a) Straight-line method

b) Unit of activity method

c) Declining balance method using double straight-line rate

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