3. Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $412,000. The company estimated that the machine would have a salvage value of $12,000 at the end of its service life. Its life is estimated at 4 years, and its working hours are estimated at 50,000 hours. Year-end is December 31.

Instructions

Compute the depreciation expense under the following methods and complete the depreciation schedules below.

(a)	Straight-line depreciation.
(b)	Activity method, assuming that machine usage was 15,000 hours for 2014; 14,000 hours for 2015; 13,000 hours for 2016 and 8,000 hours for 2017.
(c)	Sum-of-the-years'-digits.
(d)	Double-declining-balance.

Straight-line

Year	Cost	Book Value, Beginning	Depreciation Expense	Accumulated Depreciation	Book Value, Ending
				= depr exp.	=Cost - A/D
1
2
3
4

Units-of-Production (Activity)

Year	Cost	Book Value, Beginning	Depreciation Expense	Accumulated Depreciation	Book Value, Ending
				= depr exp.	=Cost - A/D
1
2
3
4

Sum-of-the-Years Digits

Year	Cost	Book Value, Beginning	Depreciation Expense	Accumulated Depreciation	Book Value, Ending
				= depr exp.	=Cost - A/D
1
2