Question $2(2$ marks$)$

Agazzi Company purchased equipment for $$304,000$ on January $1,2019.$ It is estimated that

the equipment will have a useful life of $8$ years and a residual value of $$16,000.$ Estimated

working hours are $20,000.$ During $2019,$ Agazzi uses the equipment for $525$ hours.

Instructions

Compute depreciation expense under each of the following methods.

Agazzi is on a calendar$-$year basis ending December $31.$

a$.$ Straight$-$line method for $2019.$

b$.$ Activity method $($working hours$)$ for $2019.$