P9-3A. Depreciation Methods On January 2, 2018, Skyler, Inc. Purchased a laser cutting machine to be used in the fabrication of a part of its key products. The machine cost $12,000, and its estimated useful life was four years or 920,000 cuttings, after which it could be sold for $5,000.

Required

a. Calculate each year's depreciation expense for the period 2018-2021 under each of the following depreciation methods:

1. Straight line.

2. Double-declining balance.

3. Units-of-production. Assume annual production in cutting of $200,000; 350,000; 260,000; and 110,000.

b. Assume that the machine was purchased on July 1, 2018. Calculate each year's depreciation expense for the period 2018-2022 under each of the following depreciation methods:

1. straight-line

2. Double declining balance.