Question - Machine B: The recorded cost of this machine was $201,600. Evers estimates that the useful life of the machine is 4 years with a $11,500 salvage value remaining at the end of that time period.
Calculate the amount of depreciation expense that Evers should record for machine B each year of its useful life under the following assumptions.
(1) Evers uses the straight-line method of depreciation.
(2) Evers uses the declining-balance method. The rate used is twice the straight-line rate.
(3) Evers uses the units-of-activity method and estimates that the useful life of the machine is 173,100 units.
Actual usage is as follows: 2014, 58,900 units; 2015, 47,200 units; 2016, 36,300 units; 2017, 30,700 units.