Question - On January 1, 2012, a machine was purchased for $90,000. The machine has an estimated salvage value of $6,000 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: 2012, 20,000 hrs; 2013, 25,000 hrs; 2014, 15,000 hrs; 2015, 30,000 hrs; 2016, 10,000 hrs.
Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset's life applying each of the following methods.