Bobson Company purchased a $60,000 machine on January 1. The machine is expected to have a useful life of 10 years or 60,000 operating hours and a residual value of $5,000. The machine was used for 6,000 hours in the first year and 4,400 hours in the second year. Compute the amount of depreciation expense for the first and second years under each of the methods below.

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The Answer of Bobson Company purchased a $60,000 machine on January 1. The machine is expected to have a useful life of 10 years or 60,000 operating hours and a residual value of $5,000. The machine was used for 6,000 hours in the first year and 4,400 hours in the second year. Compute the amount of depreciation expense for the first and second years under each of the methods below.

Bobson Company Purchased a $60,000 Machine on January 1