London Ltd acquires a machine for a cost of $58,000. It is expected that the machinery will continue

London Ltd acquires a machine for a cost of $58,000. It is expected that the machinery will continue

London Ltd acquires a machine for a cost of $58,000. It is expected that the machinery will continue to be operational for seven years, during which time it is expected to run for 70,000 hours. The estimated residual value of the machinery is $14,000 at the end of its useful life. Required: Calculate the depreciation charge for each of the first three years, using the following methods. 1) the straight-line method 2) the sum-of-digits method 3) the declining-balance method, using a 33 percent rate.

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