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Classic Irons, Inc. purchased manufacturing equipment with an expected useful life of five years or 5,000 hours of usage. The equipment was purchased on January 1, 2008 , for $460,000. It is expected to have a salvage value of $60,000 at the end of five years. During 2008, the equipment was used for 1,200 hours. Assume that usage for the next four years will be 1,100 hours, 900 hours, 1,300 hours, and 500 hours, respectively.
a. what is the amount of depreciation expense for each of the five using the straight line method?
b. What is the amount of depreciation expense for each of the five years using the double declining balance method?
c. What is the amount of depreciation expense for each of the five years using the units of production method?
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