Answer:
Instructions are listed below.
Step-by-step explanation:
Giving the following information:
Cactus Company purchased a new machine on August 1, 2017. At that time, the original cost of the machine was recorded at $180,000 with an estimated salvage value of $20,000. Total service hours expected for this machine is 100,000. During 2017, the machine was used for 825 hours. During 2018, the machine was used for 3,115 hours.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Year 1= [(180,000 - 20,000)/100,000]*825= $1,320
Year 2= 1.6*3,115= $4,984