Comparison of Depreciation Methods lohn Marry Inc. purchased a new molding machine for $360,500 at the beginning of year 1. Th e assembly machine has an estimated residual value of $30,000 and an estimated useful life of six years. The assembly machine is expected to last 10,000 hours. It was used 1,800 hours in year 1, 2,000 in year 2, 2,500 in year 3, 1,500 in year 4, 1,200 in year 5, and 1,000 in year 6. REQUIRED 1. Compute the annual depreciation and carrying value for the new assembly machine for each of the six years (round to the nearest dollar where necessary) under each of the follow- ing methods: (a) straight-line, (b) production, and (c) double-declining-balance 2. If the assembly machine is sold for $250,000 after year 3, what would be the amount of gain or loss under each method? (Note: Round depreciation rate to two decimal places) 3. Do the three methods differ in their effect on the company's profitability? Do they differ in their effect on the company's operating cash flows? Explain 4. On the supplied blank general journal make the appropriate entry to reflect the sale of the machine using the straight line method as stated in Requirement #2. No date is necessary. Provide a brief explanation. You must answer all four questions