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The Jason Knife Co. purchased a machine on August 1, 2011. The machine cost $495,000. It had anestimated life of ten years, 25,000 units, or

The Jason Knife Co. purchased a machine on August 1, 2011. The machine cost $495,000. It had anestimated life of ten years, 25,000 units, or 20,000 hours and an estimated residual value of $45,000. In 2011 Jasonproduced 3,000 units and ran the machine for 850 hours. In 2012, Jason produced 4,000 units and ran the machine for 1,800 hours.

Compute the depreciation charge for 2011 & 2012 using each of the following methods:

a.double declining balance:

b.units of output:

c.number of hours

d.straight line:

e: sum of the years' digits

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