Manufacturing Inc. purchased a machine on 1 January 20X2 for $500,000. The estimated useful life to Manufacturing is 10 years. The equipment has an estimated residual value of $10,000. The equipment was ready for use on 1 January 20X2.

1. Calculate depreciation expense using the straight-line method.

2. Assume the machine is anticipated to produce 500,000 units. In 20X2 the machine produced 150,000 units and in 20X3 120,000 units. Calculate depreciation expense for 20X2 and 20X3 using the productive-output method.

3. Calculate depreciation expense using the declining-balance method using 40%