Can you break out how to do each calculation for a better understanding?

FI Question 2.pdf 0 O File C:/Users/robbi/OneDrive/Desktop/MONDAY%20ACCT%20401%20-%20Financial%20Acco... w Not syncing of 1 + Draw Erase Question 2 Incomplete answer Marked out of 12.00 Depreciation Choices and Outcome. Mulligan Co. purchased a new machine on January 1. The following information pertains to the purchase: Life of asset 5 years Salvage value $3,000 Purchase price 18,000 Sales tax 1,000 Freight cost 800 Electrical set-up 700 Custom programming 500 Estimated annual labor savings 3,500 Additional revenue generated 8,000 a. Determine the capitalized cost of the new machine $ 21000 b. Compute annual depreciation, accumulated depreciation and the machine's book value for the first three year assuming: i. Straight-line depreciation ii. Double-declining balance method I Type here to search O ? 4:10 PM 7/4/2020 FI Question 2.pdf 0 File C:/Users/robbi/OneDrive/Desktop/MONDAY%20ACCT%20401%20-%20Financial%20Acco... w Not syncing of 1 + Draw Erase b. Compute annual depreciation, accumulated depreciation and the machine's book value for the first three year assuming: i. Straight-line depreciation ii. Double-declining-balance method Straight-Line Depreciation Double-Declining Balance Depreciation Accumulated Book Value at Depreciation Accumulated Book Value at Expense Depreciation Year-end Expense Depreciation Year-End Year 1 $ 3600 $ 3600 $ 17400 $ 0 $ 0 $ 0 Year 2 3600 7200 13800 0 0 0 Year 3 3600 10,200 0 0 0 10800 C. Assume the machine is sold for $8,000 at the end of the third year after depreciation has been calculated. Determine the gain or loss assuming: i. Straight-line depreciation ii. Double-declining balance method Do not use negative signs with your answers below. Amount Gain or Loss Straight-line $ 0 Double-declining $ 0 d. Given your answer in part c, if Mulligan was able to perfectly predict the future that the machine would be sold for $8,000 at the end of the third year, which depreciation method should Mulligan choose? Ignore taxes. HE Type here to search O (? 4:10 PM 7/4/2020 FI Question 2.pdf 0 O File C:/Users/robbi/OneDrive/Desktop/MONDAY%20ACCT%20401%20-%20Financial%20Acco... w Not syncing of 1 + Draw Erase Question 2 Incomplete answer Marked out of 12.00 Depreciation Choices and Outcome. Mulligan Co. purchased a new machine on January 1. The following information pertains to the purchase: Life of asset 5 years Salvage value $3,000 Purchase price 18,000 Sales tax 1,000 Freight cost 800 Electrical set-up 700 Custom programming 500 Estimated annual labor savings 3,500 Additional revenue generated 8,000 a. Determine the capitalized cost of the new machine $ 21000 b. Compute annual depreciation, accumulated depreciation and the machine's book value for the first three year assuming: i. Straight-line depreciation ii. Double-declining balance method I Type here to search O ? 4:10 PM 7/4/2020 FI Question 2.pdf 0 File C:/Users/robbi/OneDrive/Desktop/MONDAY%20ACCT%20401%20-%20Financial%20Acco... w Not syncing of 1 + Draw Erase b. Compute annual depreciation, accumulated depreciation and the machine's book value for the first three year assuming: i. Straight-line depreciation ii. Double-declining-balance method Straight-Line Depreciation Double-Declining Balance Depreciation Accumulated Book Value at Depreciation Accumulated Book Value at Expense Depreciation Year-end Expense Depreciation Year-End Year 1 $ 3600 $ 3600 $ 17400 $ 0 $ 0 $ 0 Year 2 3600 7200 13800 0 0 0 Year 3 3600 10,200 0 0 0 10800 C. Assume the machine is sold for $8,000 at the end of the third year after depreciation has been calculated. Determine the gain or loss assuming: i. Straight-line depreciation ii. Double-declining balance method Do not use negative signs with your answers below. Amount Gain or Loss Straight-line $ 0 Double-declining $ 0 d. Given your answer in part c, if Mulligan was able to perfectly predict the future that the machine would be sold for $8,000 at the end of the third year, which depreciation method should Mulligan choose? Ignore taxes. HE Type here to search O (? 4:10 PM 7/4/2020