Reference no: EM132033684

Question - Cost of machine purchased by Boris Becker, Inc., on June 1, 2011 is $32,000. It is estimated that the machine will have a $2,000 salvage value at the end of its service life. Its service life is estimated at 5years; its total working hours are estimated at 19,900 and its total production is estimated at $60,000units. Boris financial year end is December 31. The machine was operated as follows:

Year hours Units produced

2011 5,700 10,000

2012 5,000 12,000

2013 4,800 14,000

2014 4,400 13,000

2015 4,000 11,000

Compute depreciation expense on the machine over its service life using the following methods:

i. Straight-line

ii. Double -declining balance method

iii. Units-of-output

iv. Sum-of-the-years' digits