Indigo Company installs a machine in its factory at the beginning of the year at a cost of $120,000. The machines useful life is estimated to be 10 years, or 200,000 units of product, with a $10,000 salvage value. Record the companies first and second year depreciation expense using the following methods.

Straight-line Method

Annual Depreciation Expense

Year 1

Year 2

Double Decling Balance Method

Annual Depreciation Expense

Year 1

Year 2 Units-Of-Activity Method (2,500 units were produced in the first year and 3,000 units were produced in the second year)

Depreciatble cost Annual Depreciation Expense

Year 1

Year 2