Exhibit 3 Assume that a machine costing $190,000 and having a useful life of 8 years (with no salvage value) Question 6 (Exhibit 3) Compute the depreciation expense in year 3 by using Sum-of-the-years' digits. Question 7 (Exhibit 3) Compute the depreciation expense in year 2 by using double-declining method Question 8 First Third Company depreciates an asset with a cost of $54,000 over 10 years using the straight-line method of depreciation and the yearly depreciation expense is $4,000, what is the estimated salvage value of the asset? Question 9 Equipment cost: $1,000,000/ Loan rate on equipment =10% Marginal tax rate =25% 3-year MACRS life. Fim could obtain a 4-year lease which includes maintenance. Lease meets IRS guidelines to expense lease payments. Rental payment would be $310,000 at the beginning of each year. Find the present value of renting