On January 1, 2016, Canseco Plumbing Fixtures purchased equipment for $34,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the machine to operate for 10,000 hours. The machine operated for 2,400 and 3,200 hours in 2016 and 2017, respectively a. Calculate depreciation expense for 2016 and 2017 using straight line method. Straight Line Depreciation Annual Depreciation Choose Numerator: Choose Denominator: Expense Cost minus Salvage Estimated Useful Life (years) Depreciation Expense 26,000 6,500 Depreciation Expense 2016 6,500 6,500 2017 b. Calculate depreciation expense for 2016 and 2017 using sum-of-the-years'-digits method Sum-of-the-years' digits depreciation Depreciable Rate per Depreciation Year Base Expense 2016 26,000 4/10 10,400 2017 26,000 7, 800 3/10