Finnegan's Fixtures Purchased Moulding Machines at the Beginning of Year

Finnegan's Fixtures purchased moulding machines at the beginning of Year 1 for $10,000.The machines have an estimated residual value of $2,000 and an estimated life of five years or 50,000 hours of operation.The company is considering alternative depreciation methods.Calculate the following:
A) Using the straight-line depreciation method determine the accinulated depreciation at December 31, Year 2.

B) Using the units-of-production depreciation method determine the depreciation expense for Year 1. Assume that the machines are operated for 5,000 hours in Year 1 and 8,000 hours in Year 2.

C) Using the double-declining-balance depreciation method determine the book value of the equipment at December 31, Year 2.

D) What are the atvantages of using straight-line depreciation for financial reporting purposes?