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PROBLEM 1 (18 points). Warren International Company purchased a new machine on October 1, 2020, at a cost of $120,000. The firm estimated the salvage
PROBLEM 1 (18 points). Warren International Company purchased a new machine on October 1, 2020, at a cost of $120,000. The firm estimated the salvage value of the Machine to be $12,000. The machine is expected to have a useful life of 4 years and the machine is expected to be used for 12,000 working hours during the 4 years. REQUIRED: Compute the depreciation expense under the following methods for the year indicated. a Straight line for 2020 (5 points). b. Units of activity for 2020, assuming machine usage was 1,700 hours. (5 points) c. Declining balance using double the straight-line rate for 2020 and 2021 (10points). Year 2020 Year 2021
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