A company purchased equipment at the beginning of 2006 for $60,000. There was an additional cost of $2,000 for delivery of the equipment to its plant and $1,000 for installation of the equipment. The equipment has an estimated residual value of $7,000 and an estimated life of 7 years or 70,000 hours of operation. Calculate the following:
A. Depreciation expense for the year 2006 using the straight-line depreciation method.
B. Depreciation expense assuming that the equipment is operated for 15,000 hours in 2006 and 12,000 hours in 2007.
C. Using the double-declining-balance depreciation method.