Problem #7 (20 Points) The Rowland Clinic purchased a new surgical laser for $84,000. The estimated salvage is $4,000 and the useful life is 5 years or $10,000 hours. Required: Compute the annual depreciation for each of the five years under each of the following methods:

1 Straight-Line

2 Units of activity assuming the equipment was used as follows: Year 1 = 1,600 hours Year 2 = 2,100 hours Year 3 = 2,400 hours Year 4 = 1,900 hours Year 5 = 2,000 hours