25.1 D. Jones, a manufacturer, purchases a drilling machine for the sum of $4,000. It has an estimated life of five years and a scrap value of $500. Jones is not certain whether she should use the 'straight line' or 'reducing balance' basis for the purpose of calculating depreciation on the machine. You are required to calculate the depreciation on the machine using both methods, showing clearly the balance remaining in the machine account at the end of each of the five years for each method. (Assume that 40% per annum is to be used for the reducing balance method.) (Calculations to nearest $.)