The Hawkins Company, at the beginning of a fiscal year, buys a machine for $40,000. The machine has an estimated life of five years and an estimated trade-in value of $4,000.
Instructions Using the following three methods, determine the annual depreciation of the machine for each of the expected five years of its life, the accumulated depreciation at the end of each year, and the book value of the machine at the end of each year.

a. Straight-line method

b. Double-declining-balance method

c. Sum-of-the-years’-digits method