Question 4

On July 1, 2022, Jose bought a used piece of machinery for $10,000. He expects the machine to last 4,500 machine hours or nine years, with a salvage value of $1,000. Assuming he uses the machine for 300 hours in the first year, make Joses Dec 31, 2022 journal entry with:

a) the straight-line depreciation method

b) the units-of-production depreciation method

c) the double-declining-balance depreciation method