On January 1, 2022, The Luxury Interior purchased machinery worth $325,000 to manufacture modern furniture. The expected useful life of the machines is five years and a residual value of $96,000. The machine is expected to produce 660,000 pieces of furniture over its useful life. The company had to pay an additional $35,000 for delivery and installation. Required Determine depreciation using: a. Straight-line depreciation Solution: Depreciation for years 2022 1, 2023 b. Units-of-output depreciation method given that the actual output in furniture was 100,000 (2022), 130,000 (2023). Solution: Depreciation for years 2022 2023 C. Assuming use of the straight-line method, determine the revised depreciation if the useful life estimate was revised at the start of 2024, suggesting a remaining useful life of 4 years in other words, a total life of 6 years). The revised salvage value is $54,400. Solution: Depreciation for years 2022 , 2023 , 2024