Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $41,000. The machine has an estimated life of five years and an estimated salvage value of $6,700. Required: Calculate...

Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $41,000. The machine has an estimated life of five years and an estimated salvage value of $6,700.



Required:

1. Calculate the depreciation expense for each year of theasset'slife
   using                                                      A. Straight-line depreciation.                                        B.  Double-declining-balance depreciation.


2. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.)


3. Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method.