The Heist Company purchased a machine on January 2, 2007 and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of $5,000. The following costs relate to the acquisition and use of the machine during the first year of its operations:

Required
Compute the depreciation expense for 2007 and2008.

Transcribed Image Text:

Invoice price Discounts available and taken Freight Installation $50,000 1,000 700 900 $1,100 750 250 Testing Noral spoilage of materials during the year Abnormal spoilage of materials during the year Wages of machine operator 15,000