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Burrell Company purchased a machine for $23,000 on January 2, 2019. The machine has an estimated service life of 5 years and a zero estimated

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Burrell Company purchased a machine for $23,000 on January 2, 2019. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $11,500 each year. The tax rate is 35% Required: Compute the rate of return earned (on the average net asset valve) by the company each year of the asset's life under the straight line and the double declining balance depreciation methods. Assume that the machine is the company's only asset

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