Open World Company purchased tool sharpening equipment on January 1, 2015, for $194,400. The equipment was expected to have a useful life of 4 years or 22,950 operating hours, and a salvagel value of $10,800. The equipment was used for 4,650 hours during 2020, 7,500 hours in 2019, 7,350 hours in 2018, and 3,450 hours in 2017.

Instructions

Determine the amount of depreciation expense for the years ended December 31, 2017, 2018, 2019 and 2020, by

1. the straight-line method
2. the units-of production method
3. the declining-balance method, using twice the straight-line rate