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Burrell Company purchased a machine for $ 1 1 , 0 0 0 on January 2 , 2 0 1 9 . The machine has
Burrell Company purchased a machine for $ on January The machine has an estimated service life of years and a zero estimated
residual value. The asset earns income before depreciation and income taxes of $ each year. The tax rate is
Required:
Compute the rate of return earned on the average net asset value by the company each year of the asset's life under the straightline and the double
decliningbalance depreciation methods. Assume that the machine is the company's only asset.
Straightline method. If required, round to one decimal place.
Doubledecliningbalance depreciation method. Round to two decimal places. Round your intermediate dollar value calculations to the
nearest whole number.
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