1 Q1 On January 1, 2021, Locke Company, a 2 small machine tool manufacturer, acquired for $7,750,000 a piece of new industrial 3 equipment. The new equipment had a useful life of 10 years, and the salvage value 4 was estimated to be $550,000 Locke estimates that the new equipment can produce 5 Use the following depreciation methods to calculate the depreciation expense for 2021 2022, and 2023 6 (1) Straight-line 7 (2) Double-declining balance, 8 (3) Sum-of-years'-digits. D 4 5 6 D E F G 1 Q2 Alladin Company purchased Machine #201 on May 1, 2021. The following information relating to Machine 2. #201 was gathered at the end of May 3 Price $1,586,000 5 Freight-in costs $76,000 Prep and installation costs $23,600 7 Labor costs during regular production operations $5,054,100 8 9 Alladin intends to use the machine only 12 years, however, 10 after which it expects to be able to sell it for $29,600 The invoice for Machine #201 was paid 11 May 1, 2021. Alladin uses the calendar year as the basis for the preparation of financial statements. 12 13 Instructions: 14 (1) Compute the depreciation expense for the years indicated using the straight-line method for 2021. (Round to the nearest dollar.) 15 16 17 18 PARINARA 22 23 (2) Compute the depreciation expense for the years indicated using the sum-of-years-digits method 24 for 2022 (Round to the nearest dollar)