Numo Company purchased a new machine on October 1, 2017, at a cost of $145,000.

The company estimated that the machine will have a salvage value of $25,000.The machine

is expected to be used for 20,000 working hours (5000-3000-4000-4500-3500) during its 5-year life.

Instructions

Compute the depreciation expense under the following methods for the year indicated.

(a) Straight-line for 2017.

(b) Units-of-activity for 2017