On January 1, 2018, Alike Company purchased the following two machines for use in its production process.

Machine A - The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700, shipping cost $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Alkek estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period. Assume that the straight-line method of deprivation is used.

Machine B - The recorded cost of this machine was $160,000. Alike estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period.

Calculate the amount of deprecation expense that Alike Company should record for machine A and B (separately) for each year of its useful life under the following assumptions.

(a) Alike uses the straight-line method of deprecation.

(b) Alike uses the declining-balance method. The rate used is twice the straight-line method.

(c) Alike uses the units-of-activity method and estimates that the useful life of the machine is

125,000 units. Actual usage is as follows: 2017 = 45,000 units; 2018 = 35,000 units; 2019 = 25,000 units; 2020 = 16,000 units; 2021 = 4,000 units

[ Column 1 ][ Column 2 ][ Year 1 ][ Year 2 ][ Year 3 ][ Year 4 ][ Year 5 ]

[ Aa ][ Straight Line ][ ][ ][ ][ ][ ]

[ Ab ][ Declining Balance ][ ][ ][ ][ ][ ]

[ Ac ][ Units of Activity ][ ][ ][ ][ ][ ]

[ Column 1 ][ Column 2 ][ Year 1 ][ Year 2 ][ Year 3 ][ Year 4 ][ Year 5 ]

[ Ba ][ Straight Line ][ ][ ][ ][ ][ ]

[ Bb ][ Declining Balance ][ ][ ][ ][ ][ ]

[ Bc ][ Units of Activity ][ ][ ][ ][ ][ ]