Hillary Company purchased a new machine on September 1, 2007, ata cost of $96,000. The company estimated that the machine has asalvage value of $6,000. The machine is expected to be used for 70,000 working hours during its 8-year life.
Compute depreciation using the following methods in the year indicated.
Declining-balance using double the straight-line rate for 2007 and 2008.
Units-of-activity for 2007, assuming machine usage was 2,900 hours.