Elvis Costello Company purchased a new machine on October 1, 1996, at a cost of \(\$ 96,000\). The company estimated that the machine will have a salvage value of \(\$ 12,000\). The machine is expected to be used for 84,000 working hours during its 6 -year life.

\section*{Instructions}

Compute the depreciation expense under the following methods for the year indicated: (1) straight-line for 1996 , (2) units-of-activity for 1996 , assuming machine usage was 1,700 hours, and (3) declining-balance using double the straight-line rate for 1996 and 1997.