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1. Depreciation Computations-Four Methods Maserati Corporation purchased a new machine for its assembly process on August 1, 2010. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated.
(a) Straight-line depreciation for 2010.
(b) Activity method for 2010, assuming that machine usage was 800 hours.
(c) Sum-of-the-years'-digits for 2011.
(d) Double-declining-balance for 2011.
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