Depreciation and Rate of Return Burrell Company purchased a machine for $59,000 on January 2,...
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Depreciation and Rate of Return Burrell Company purchased a machine for $59,000 on January 2, 2019. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $29,500 each year. The tax rate is 35%. Required: Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is the company's only asset. Straight-line method. If required, round to one decimal place. 2019 fill in the blank 1 % 2020 fill in the blank 2 % 2021 fill in the blank 3 % 2022 fill in the blank 4 % 2023 fill in the blank 5 % Double-declining-balance depreciation method. Round to two decimal places. Round your intermediate dollar value calculations to the nearest whole number. 2019 fill in the blank 6 % 2020 fill in the blank 7 % 2021 fill in the blank 8 % 2022 fill in the blank 9 % 2023 fill in the blank 10 %
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