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Red Company purchased a machine on January 1, 2018.

Cost $210,000

Residual value 24,000

Useful life in years 5 *

Useful life in hours 25,000

*Write the formulas assuming useful life in years will always be five years Useful life in hours 25,000 but that the other three amounts given may vary.

Determine the annual depreciation expense under each of four depreciation methods

	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2022
Hours used	4,800	4,900	5,200	5,500	5,300
Straight line
Units of production
Double-declining balance
Sum-of-the-years-digits

Determine the machine's book value at the end of each year under each of the four depreciation methods

	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2022
Straight line
Units of production
Double-declining balance
Sum-of-the-years-digits