1.
Machinery purchased at the beginning of the fiscal year for $240,000 is
expected to have a useful life of four years or 20,000 operating hours,
and a residual value of $40,000. Compute the depreciation expense for
the first and second years of the asset's useful life under each of the
following methods.
Year 1
Year 2
(a) Straight-line
$\text{50,000}$
$\text{50,000}$
(b) Units of production
(Year 1, 3,000 hours;
Year 2, 4,000 hours)
$\text{25,000}$
$\text{30,000}$
(c) Double-declining balance
$\text{120,000}$
$\text{60,000}$
(d) Sum-of-the-years'-digits
$
