DEPRECIATION

Question #$3[20$ points$]$

On October $1$st $2020$ your company bought a new state of the art digital printing machine for US $$150,000\mathrm{.}00.$ It is expected to have a shelf life of $6$ years after which it is intended to be sold for $US$15,000.$

a$.$ Using the straight$-$line method show the annual depreciation schedule. Depreciation is recognized to the nearest whole month. $[18$ points$]$

b$.$ Explain the year end value as at $2025$ versus the residual value. $[2$ points$]$

$\backslash$table$[[,,$Straight Line,$],[$Year$,$Asset Cost,Annual Depreciation,Book Year End Value$],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,$$$22,500\mathrm{.}00,$$

PLEASE SHOW ALL CALCULATIONS AND EXPLANATIONS!