5. A machine cost $900,000 on April 1, 2020. Its estimated salvage value is $90,000 and its expected life is eight years. The company uses a calendar year for financial statement purposes.

Instructions

(1) Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the amounts used.

(a) Straight-line for 2020 and 2021

(b) Double-declining balance for 2020 and 2021

(2) For each of the methods above, please show the Balance Sheet presentation of the asset and related accumulated depreciation as of December 31, 2021.