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Millco, Inc., acquired a machine that cost $600,000 early in2016. The machine is expected to last for eighth years, and itsestimated salvage value at the end of its life is $80,000.Required:a. Using straight-line depreciation, calculate thedepreciation expense to be recognized in the first year of themachine's life and calculate the accumulated depreciation after thefifth year of the machine's life.b. Using declining-balance depreciation at twice thestraight-line rate, calculate the depreciation expense for thethird year of the machine's life.c. What will be the net book value of the machine at the endof its eighth year of use before it is disposed of, under eachdepreciation method?
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