Answer:
The machine has a useful life or 4 years and residual value of $1400 so its total The Depreciable Amount is $21,600 (22000-1400)
If we use straight line method depreciation in each year will be 21,600/4=$5400
If we use Units of production method then:
Year 1= 21,600*4120/10300=$8640
Year 2=21600*3090/10300=$6480
Year 3=21600*2060/10300= $4320
Year 4= 21600*1030/10300=$2160
If we use the double-declining method
Rate of Depreciation = 1/4*2=50%
Year = 0.5*21600=$10800
Year 2=0.5*(21600-10800)=$5400
Year 3= 0.5*(10,800-5400)= $2700
Year 4= (5400-2700)= 2700
Explanation:
