depreciation and rate of return

Depreciation and Rate of Return Burrell Company purchased a machine for $20,000 on January 2, 2016. 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 $10,000 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 Ife under the straight-line and the double-decining-balance depreciation methods. Assume that the mechine the company's only asset Straight-line methed. Round to one decimal place 2016 18,0001% C,4,000-% [-10,000) x % 6,0001 % 2,000|x% 2017 2018 2019 Double-decining-balance depreciation method. Round to two decimel places. Round your intermediate dolar value calculations to the nearest whole number 8.75V % 2016 86.51 x % 167.55 x % 302.581 x %