Cost of Asset and Depreciation Method Heist Company purchased a machine on January 2, 2019, and uses the 150%-declining-balance depreciation method. The machine has an expected life of 10 years and an expected residual value of $5,000. The following costs relate to the acquisition and use of the machine during the first year of its operations: Invoice price $1,100 $50,000 1,000 Discounts available and taken 750 Testing Normal spoilage of materials during the year Abnormal spoilage of materials during the year Wages of machine operator 700 250 Freight Installation 900 15,000 Required: 1. Compute the depreciation expense for 2019 and 2020. If required, round to the nearest dollar. 2019 $ 2020 $ 2. What is the effect on the financial statements during the first two years if the company used the straight-line method instead of the 150%-declining-balance method? The book value of property, plant, and equipment would be higher under straight-line