On January 1, 2005, a machine was purchased for 77,000. The machine has an estimated salvage value of 5000 and an estimated useful life of 5 years. The machine can operate for 100,000 hours before it needs to be replaced. The company closed its books on December 31 and operates as follows: 2005, 20,000 hours; 2006, 25,000 hrs; 2007, 15,000 hrs; 2008, 30,000; 2009, 10,000 hrs.

Compute the annual depreciation charges over the machines life assuming a December 31st year end for the following methods.

Straight ligh, sum of years digits, activity method, double declining balance method

Assume a fiscal year end of September 30. Compute the annual depreciation charges over the assets life applying each of the following methods.

Straight line method, Sum of the years digits method, Double declining balance method.