for Partial Periods—SL, Act., SYD, and DDB) On January 1, 2005, a machine
was purchased for $77,000. The machine has an estimated salvage value of $5,000 and an estimated useful
life of 5 years. The machine can operate for 100,000 hours before it needs to be replaced. The company
closed its books on December 31 and operates the machine as follows: 2005, 20,000 hrs; 2006, 25,000 hrs;
2007, 15,000 hrs; 2008, 30,000 hrs; 2009, 10,000 hrs.
(a) Compute the annual depreciation charges over the machine’s life assuming a December 31 yearend
for each of the following depreciation methods.
(1) Straight-line method. (3) Sum-of-the-years’-digits method.
(2) Activity method. (4) Double-declining balance method.
(b) Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset’s
life applying each of the following methods.
(1) Straight-line method.
(2) Sum-of-the-years’-digits method.
(3) Double-declining balance method.