Sheridan Companypurchased a new machine on October 1, 2020, at a cost of $119,000. The company estimated that the machine will have a salvage value of $12,500. The machine is expected to be used for10,000working hours during its4-year life.

Part 1

Compute the depreciation expense under straight-line method for 2020.

Depreciation expense 2020:

Part 2

Compute the depreciation expense under units-of-activity for 2020, assuming machine usage was1,790hours.

Depreciation expense 2020:

Part 3

Compute the depreciation expense under declining-balance using double the straight-line rate for 2020 and 2021.

Depreciation expense: 2020 and 2021