Samanta company purchased a new machine on october 1, 2019, at a cost of $96.000. the company estimated that the machine will have a residual value of $12,000. The machine is expected to be used Samanta Company purchased a new machine on October 1, 2019, at a cost of $96,000. The company for 10,000 working hours during its 5-year life. Instructions:
Compute the depreciation expense under the following methods for the year indicated. (a) Straight-line for 2019. (b) Units-of-activity for 2019, assuming machine usage was 1,700 hours.
(c) Declining-balance using double the straight-line rate for 2019 and 2020.