Depreciation and Rate of Return

Burrell Company purchased a machine for $$57,000$ on January $2,2019.$ The machine has an estimated service life of $5$ years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $$28,500$ each year. The tax rate is $30\%.$

Required:

Compute the rate of return earned $($on the average net asset value$)$ 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.

Straight$-$line method. If required, round to one decimal place.

$2019$ fill in the blank $1$

$23\mathrm{.}3$

$\%$

$2020$ fill in the blank $2$

$30$

$\%$

$2021$ fill in the blank $3$

$42$

$\%$

$2022$ fill in the blank $4$

$70$

$\%$

$2023$ fill in the blank $5$

$210$

$\%$

Double$-$declining$-$balance depreciation method. Round to two decimal places. Round your intermediate dollar value calculations to the nearest whole number.

$2019$ fill in the blank $6$

$8\mathrm{.}75$

$\%$

$2020$ fill in the blank $7$

$37\mathrm{.}92$

$\%$

$2021$ fill in the blank $8$

$86\mathrm{.}53$

$\%$

$2022$ fill in the blank $9$

$169\mathrm{.}38$

$\%$

$2023$ fill in the blank $10$

$508\mathrm{.}15$

$\%$