Problem - The Primark Company purchased a machine on January 2, 2010 and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of $5,000. The following costs relate to the acquisition and use of the machine during the first year of its operations:

Invoice price                                                        $50,000

Discounts available and taken                                1,000

Freight                                                                 700

Installation                                                           900

Testing                                                                 1,100

Normal spoilage of materials during the year           750

Abnormal spoilage of materials during the year        250

Wages of machine operator                                    15,000

Required: Compute the depreciation expense for 2010 and 2011.