Q1) Millco Inc obtained a machine which cost 240,000 early in 2009. Machine is expected to last for 8 yrs, and its evaluated salvage value at the end of its life is 24,000.
a) Using straight line depreciation, compute depreciation expense to be recognized in the 1st yr of machine's life and compute accumulated depreciation after the 5th yr of machine's life.
b) Using declining-balance depreciation at twice straight-line rate, compute depreciation expense for the 3rd year of machine's life.
c) What will be net book value of machine at the end of its 8th yr of use before it is disposed of, under each depreciation method?