Calculate the amount of depreciation expense that Pele Company should record for machine for the first three years. Machine: The record cost of this machine was 160,000. Pele estimates that the useful life of the machine is 4 years with a 10,000 salvage value remaining at the end of that time period.
1) Pele uses the straight line method for depreciation.
2) Pele uses the declining-balance. The rate used is twice the straight line rate. 3) Pele uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2010, 45,000 units; 2011, 35,000 units; 2012, 25,000 units; 2013, 20,000 units. Thanks so much in advance