Maserati Corporation purchased a new machine for its assembly process on August 1, 2014. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year-end is December 31.

Instructions:

Compute the depreciation expense under the

following methods.

(a) Straight-line depreciation.

Sum-of-the-Years-Digits Method

Double-Declining Balance Method