Compute the depreciation expense under declining-balance


Exercise

Rottino Company purchased a new machine on October 1, 2014, at a cost of $134,200. The company estimated that the machine will have a salvage value of $13,000. The machine is expected to be used for 11,700 working hours during its 5-year life.

Compute the depreciation expense under straight-line method for 2014. (Round answer to 0 decimal places, e.g. 2,125.)

Compute the depreciation expense under units-of-activity for 2014, assuming machine usage was 1,800 hours.

Compute the depreciation expense under declining-balance using double the straight-line rate for 2014 and 2015.

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Accounting Basics: Compute the depreciation expense under declining-balance
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