Freedom Co. purchased a new machine on July 2, 2013, at a total installed cost of $44,000. The machine has an estimated life of five years and an estimated salvage value of $6,000.  

Required:  

  

 a. Calculate the depreciation expense for each year of the asset’s life using:

  

1. Straight-line depreciation.

  

2. Double-declining-balance depreciation.

  

3. 150% declining-balance depreciation.

  

b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2013, under each of the three methods? (Note: The machine will have been used for one-half of its first year of life.)

  

c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2014, under each of the three methods.