Megan Company purchased a new machine on August 1, 2018, at a cost of $131,000. The company estimated that the machine has a salvage value of $51,452, is expected to be used for 66,290 working hours, and will have a 7-year life.

Instructions

A) Compute the depreciation expense under the straight-line method for 2018, 2022, and 2025, assuming a December 31 year-end.

B) Compute the depreciation expense under the double- decling balance method for 2018 and 2019, assume the DDB rate is 100% / 7 years x 2= 28.57%

C) Compute the depreciation expense under the units-of-activity method for 2018, assuming machine usage was 4,444 hours. (record depreciation per unit to the nearest cent.)