Question:

Summertime Machinery Co. purchased machinery on October 1, 2019, at a total cost of $98,000. The machinery has an estimated residual value of $8,000. The estimated life of the machinery is 6 years or 50,000 hours. During 2019 and 2020, the machinery was used 1,400 and 8,760 hours, respectively.

Required:

Compute depreciation under straight-line, units-of-production, and double-declining balance methods for 2019 and 2020.