Problem:
Rottino Company purchased a new machine on October 1, 2014, at a cost of $120,000. The company estimated that the machine will have a salvage value of $13,400. The machine is expected to be used for 10,200 working hours during its 4-year life.
Required:
Question: Compute the depreciation expense under units-of-activity for 2014, assuming machine usage was 1,800 hours
Note: Explain all calculation and formulas.