On January 1, 2017, a machine was purchased for $90,000. The machine has an estimated residual value of $6,000 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 the machine as follow; 2017, 20,000 hours; 2018, 25,000 hours; 2019, 15,000 hours; 2020, 30,000 hours; and 2021, 10,000 hours.

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A) Compute the annual depreciation charges over the machines life assuming a December 31 year-end for each of the following depreciation methods.

1- Straight-line method

2- Activity Method

3- Sum-of-the-years-digits method

4- Double-declining-balance method

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

1- Straight-line method

2- Sum-of-the-years-digits method

3- Double-declining-balance method