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

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

Cost

$100,000

Expected salvage value

$1,000

Estimated useful life in years

6

Estimated useful life in hours

300,000

Hours used in 2020 is:

60,000

Required:

Calculate the depreciation expense of the machine for the year ended 30 June 2019 (two decimal places)using:

1. Straight-line method

2. Unit of activity method

3. Declining balance method using double straight-line rate

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