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Kallik Co. purchased an equipment system for $320,000 on January 1. The company expects the equipment to last for five years or 75,000 hours of

Kallik Co. purchased an equipment system for $320,000 on January 1. The company expects the equipment to last for five years or 75,000 hours of operation, with an estimated $20,000 salvage value. During the first year, the equipment was in operation for 8,000 hours. Compute the depreciation expense relating to the equipment for Year 1 using the following depreciation methods. Please include your calculations for partial credit.

a.Straight-line b. Units-of-Production c. Double Declining Balance

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