On January 1, 2013, Canseco Plumbing Fixtures purchased equipment for $40,000. Residual value at the end of an estimated four-year service life is expected to be $4,000. The company expects the machine to operate for 20,000 hours. The machine operated for 2,700 and 3,500 hours in 2013 and 2014, respectively.

a.	Calculate depreciation expense for 2013 and 2014 using straight line method.

Straight-Line Depreciation
	Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation Expense
		/		=	Depreciation Expense
		/		=
	Depreciation Expense
2013
2014

b.

Calculate depreciation expense for 2013 and 2014 using sum-of-the-years'-digits method.

Sum-of-the-years' digits depreciation
	Depreciable Base	x	Rate per Year	=	Depreciation Expense
2013		x		=
2014		x		=

c.

Calculate depreciation expense for 2013 and 2014 using double-declining balance method.

	Depreciation for the Period			End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Depreciation Expense	Accumulated Depreciation	Book Value
2013
2014

d.

Calculate depreciation expense for 2013 and 2014 using units-of-production method.

Select formula for Units of Production Depreciation:
Calculate 2013 depreciation expense:
Depreciation per machine hour
Machine hours in 2013
Depreciation in 2013
Calculate 2014 depreciation expense:
Depreciation per machine hour
Machine hours in 2014
Depreciation in 2014