Hoang Lam Company purchased a new machine on October 1, 2020, at a cost of €96,000. Thecompany estimated that the machine would have a residual value of €12,000. The machine is expectedto be used for...

Hoang Lam Company purchased a new machine on October 1, 2020, at a cost of €96,000. Thecompany estimated that the machine would have a residual value of €12,000. The machine is expectedto be used for 10,000 working hours during its 5-year life.Required:Compute the depreciation expense under the following methods for the year indicated.a. Straight-line for 2020. (0.5 marks)b. Units-of-activity for 2020, assuming machine usage was 1,700 hours. (0.5 marks)c. Declining-balance using double the straight-line rate for 2020 and 2021. (0.5 marks)d. What are relationships between depreciation expense and net income? Suppose the net incomebefore depreciation of the company was €187.000 USD, calculate the net income after depreciationand make suggestion on choices of depreciation method for the company?