Hoang Lam Company purchased a new machine on October 1, 2020, at a cost of 96,000. The company estimated that the machine would have a residual value of 12,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Required: Compute the depreciation expense under the following methods for the year indicated. a. Straight-line for 2020. (0.5 marks) b. Units-of-activity for 2020, assuming machine usage was 1,700 hours. (0.5 marks) c. Declining-balance using double the straight-line rate for 2020 and 2021. (0.5 marks) d. What are relationships between depreciation expense and net income? Suppose the net income before depreciation of the company was 187.000 USD, calculate the net income after depreciation and make suggestion on choices of depreciation method for the company? (0.5 marks)