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On August 1, 2020, Indigo Corporation purchased a new machine for its assembly process at a cost of $147,600. The company estimated that the machine
On August 1, 2020, Indigo Corporation purchased a new machine for its assembly process at a cost of $147,600. The company estimated that the machine would have a trade-in value of $14,400 at the end of its useful life. Its useful life was estimated to be six years and its working hours were estimated to be 15,000 hours. Indigo's year end is December 31. Calculate the depreciation expense under activity method for 2020, assuming that machine use was 900 hours. (Round depreciation per unit to three decimal places, eg. 5.250 and final answer to O decimal places, eg. 5,275.)
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