The Linder Manufacturing Company acquires a new machine for \(\$ 7,200\) on July 1, 1975 . It is estimated that it will have a service life of 6 years and then have a salvage value of \(\$ 900\). The company closes its books annually on June 30 .

a Compute the depreciation charges for each year of the asset's life assuming the use of:

(1) The straight-line method.

(2) The sum-of-the-years'-digits method.

(3) The declining-balance method, with a rate twice the straight-line rate.

b If the machine were sold for \(\$ 700\) on October 30,1980 , give the journal entries that would be made on that date under each of the methods in part a.