Question

On December 31, 2017 Athletic shoe acquired new inspecting machine. Data is given below Cost $600,000 Residual value $65,000 Useful life 5 Years Units inspected 95,000 shoes Year 1: 13,000, Year 2: 16,000, Year 3: 23,000 Year 4:18,000, Year 5: 25,000 Required: Compute the annual depreciation expense for each year using the following methods a. Declining balance method (5) b. Units of production method