PROBLEM III

Equipment purchased at the beginning of the fiscal year for $$15,000$ is expected to have a useful life of $5$ years, or $15,000$ operating hours, and a residual value of $$30,000.$ Compute the depreciation for the first and second years of use by each of the following methods:

$($a$)$ straight$-$line

$($b$)$ units$-$of$-$production $(2,500$ hours first year; $3,250$ hours second year$)$

$($c$)$ double declining$-$balance at twice the straight$-$line rate.