A machine was purchased for $$40,000$ with a recovery period

of $10$ years and a salvage value of $$10,000.$

The expected useful life at your shop is $8$ years according to

your operations team. The operating cost is $$15,000$ per year.

Operating the machine requires an additional employee to be

added to the team at an annual salary of $$60,000$ plus benefits

worth $$30,000$ per year.

Apply straight line depreciation and answer the following:

a$)$ Does anything stated in the second paragraph of this

problem have something to do with depreciation? Please

explain.

b$)$ What is the depreciation amount for year $3?$

c$)$ What is the book value of the machine for year $3?$

Please submit your work in a PDF file.