Rottino Company purchased a new machine on October 1, 2014, at a cost of $145,800. The company estimated that the machine will have a salvage value of $14,200. The machine is expected to be used for 11,000 working hours during its 5-year life.
Compute the depreciation expense under the following methods for the year indicated.
a. Straight-line for 2014
b. Units-of-activity for 2014, assuming machine usage was 1,700 hours.
c. Declining -balance using double the straight-line rate for 2014 and 2015.