On January |, 2000, Desmond Photo Developing Company purchased a machine for printing pictures. The cost of the machine was $80,000, and the estimated life and resid- ual value are five years and $10,000 respectively.

Required: (1) Compute the depreciation expense for 2000 and 2001 under each of the following

 lop1 methods:

(a) straight line and

(b) double declining balance. (2), Show how Desmond would report the book value of the machine on its December 31, 2001 balance sheet under each method.