Shadow Corporation purchased a machine on January 1 of the year 1 for $860,000. Calculate the annual depreciation expense for each year of the machine's life (estimated at 4 years or 10,000 hours, with a salvage value of $60,000) using each of the below-mentioned methods. During the machine's 4-year life its hourly usage was: 1,500; 3,000; 3,500; 2,000; hours.

	Straight-line	Units-of-production	Double-declining balance
Year 1
Year 2
Year 3
Year 4
Total (after 4 years)

b. Refer to the scenario with straight-line depreciation. Assume the machine is sold for 300,000 after year 3. Record the journal entry for this sale of the equipment.

c. What would be the depreciation expense in years 1 and 2 if the machine were purchased on October 1 instead of January 1, and the machine was used only 700 hours in year 1 and 3,000 hours in year 2?

	Straight-line	Units-of-production	Double-declining balance
Year 1
Year 2