On January 1, 2017, B Company purchased two machines for use in its production process.

Machine B: The recorded cost of this machine was $120,000. Dill estimates that the useful life of the machine is 4 years with a $8,000 salvage value remaining at the end of that time period.

(b) Calculate the amount of depreciation expense that should be recorded for Machine B each year of its useful life under the following assumption. (1) Company uses the straight-line method of depreciation. (2) Company uses the declining-balance method. The rate used is twice the straight-line rate. (3) Company uses the units-of-activity method and estimates the useful life is 25,000 units. Actual usage: 2017= 5,500 units; 2018= 7,000 units; 2019= 8,000 units; 2020= 4,500 units. (c) Which method used to calculate depreciation on Machine B reports the lowest amount of depreciation expense in year 1 (2017)? The lowest amount in year 4 (2018)? The lowest total amount over the 4- year period? Book Value at Beginning of Year DDB Rate Annual Deprec Expense Accumulated Depreciation