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P10-5 Depreciation Calculations Gretchen, Inc., a firm that makes oversized boots, purchased a machine for its factory, 'The following data relate to the machines Price

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P10-5 Depreciation Calculations Gretchen, Inc., a firm that makes oversized boots, purchased a machine for its factory, 'The following data relate to the machines Price $46,000 $350 Delivery charges Installation charges $650 Date purchased May 1, 2017 Estimated useful life: 10 years In years In hours of production 25,000 hours of operating time $2,000 Salvage value During 2017, the machine was used 1,800 hours. During 2018, the machine was used 2,900 hours. Required: Determine the depreciation expense and the year-end carrying amount for the machine for the years 2017 and 2018, assuming that: 1. The straight-line method is used. 2. The units-of-production method is used. 3. Interpretive Question: If you were Gretchen, which method would you use in order to report the highest profits in 2017 and 2018 combined

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