The following information pertains to a machine purchased by Bakersfield Company on January 1, 2010.
Purchase price $63,000
Delivery cost $2,000
Installation charge $3,000
Estimated useful life 8 years
Estimated units the machine will produce 130,000
Estimated salvage value $3,000
The machine produced 14,400 units during 2010 and 17,000 units during 2011.
Determine the depreciation expense Bakersfield would report for 2010 and 2011 using each of the following methods.
a. Straight-line.
b. Double-declining-balance.
c. Units-of-production.