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On January 1, 2012, a machine was purchased for $197,100. The machine has an estimated salvage value of $13,140 and an estimated useful life of 5 years. The machine can operate for 219,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2012, 43,800 hrs; 2013, 54,750 hrs; 2014, 32,850 hrs; 2015, 65,700 hrs; 2016, 21,900 hrs.
1. Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods.1. Activity Method 2. Sum of the years digits 3. Double declining method
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