ABC company acquired a $60,000 machine on Jan 1, 2020. The machine is estimated to have a useful life of 4 years, and a residual value of $10,000. For unit depreciation purposes, the machine is expected to produce 500,000 units.

a. if ABC company uses straight line depreciation, what is the book value of the machine on dec 31, 2021?

$15,000. $35,000 $25,000 $22,500 $12,500

b. what is the balance in the accumulated depreciation account on Dec 31, 2021. if ABC company uses double-declining-balance depreciation?

$30,000 $25,000 $40,000 $45,000 $37,500