Question - Machine B: The recorded cost of this machine was $294,400. Thao estimates that the useful life of the machine is 4 years with a $18,400 salvage value remaining at the end of that time period.
Calculate the amount of depreciation expense that Thao should record for Machine B each year of its useful life under the following assumptions.
(1) Thao uses the straight-line method of depreciation.
(2) Thao uses the declining-balance method. The rate used is twice the straight-line rate.
(3) Thao uses the units-of-activity method and estimates that the useful life of the machine is 121,000 units. Actual usage is as follows: 2014, 42,500 units; 2015, 34,900 units; 2016, 24,900 units; 2017, 18,700 units.