Jensen Company purchased a new machine on October 1, 2014, at a cost of $104,000. The company estimated that the machine has a salvage value of $8,000. The machine is expected to be used for 80,000 working hours during its 8-year life. Compute depreciation using the following methods in the year indicated.

Straight-line for 2014 and 2015, assuming a December 31 year-end.

unit of activity

depriciation