The Paul Cleaning Company purchased an industrial cleaning machine on January iE 2000 for $60,000. The machine had an expected life of five years, a residual value of zero, and a life of three years under the Modified Accelerated Cost Recovery System for income taxes.

Required: For each year of the machine's service life, compute the depreciation expense reported

(a) on the company’s financial statements (using the straight-line method) and

(b) on the company’s income tax returns.

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