Wilson Co. purchased machinery for $54,000 on October 23, 2018. The machine has an estimated life of 5 years and salvage value of $6,000. Estimated output is 40,000 machine hours. The machine was used 6,500 hours in 2018 and 13,200 hours in 2019.1. Calculate depreciation expense and book value of the machine for 2018 and 2019 using:

a. Straight-line method

Now, assume, during 2020, Wilson determines that the useful life of the machine will be 6 years rather than 5 years and the salvage value will only be $2,000. Calculate revised depreciation for 2020 assuming Wilson uses straight-line depreciation. (For this requirement, assume the machine was originally purchased on January 1, 2018.)