(1) What are the three main factors used in determining depreciation of a fixed asset?

(2) What is the double-declining balance method and what are the benefits of it?

3. Suppose a $9,000 machine will be used for five years. At that time, the machines salvage value will be $1,500. It was placed in service January 1^st of year 1.

Please select either the straight-line (SL) or double-declining balance (DDB) method of depreciation and complete the following:

(3. a) A full annual depreciation schedule for the useful life of the asset (please indicate which method you are using).

(3.b) The journal entry to record the acquisition of the machine.

(3.c) The journal entry to record the first month of depreciation on the machine.