Crimson Company purchased Machine 201 on May 1, 20X5. The following information relating to Machine 201 was gathered at the end of May. CRIMSON COMPANY INFORMATION CONCERNING MACHINE 201 Purchase Price Credit Terms Freight In Costs (not subject to discount) Preparation and Installation Costs Labor Costs For Regular Production Operations 71,500 (2/10, n/30) 1,130 3,800 10,500 It was expected that the machine could be used for 10 years, after which the salvage value would be zero. Crimson intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $1,200. The invoice for Machine 201 was paid May 5, 20X5. Crimson uses the calendar year as the basis for the preparation of financial statements Compute the depreciation expense and book value for the periods indicated using the method indicated. Round all answers to the nearest dollar. (a) Straight line depreciation for 20X5 and 20X6. (b) Sum-of-the-years'-digits depreciation for 20X6 and 20X7. (c) 50% declining balance depreciation for 20X7 and 20X8. Suppose that Lance Jones, the president of Crimson Company, tells you that because the company is a new organization, he expects it will be several years before production and sales reach optimum levels. He asks you to recommend a depreciation method that will allocate less of the company's depreciation expense to the early years and more to later years of the assets' lives. What method would you recommend and why? REQUIRED: (1) (2)