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I just need help on the last two I got wrong Depreciation and Rate of Return Burrell Company purchased a machine for $58,000 on January
I just need help on the last two I got wrong
Depreciation and Rate of Return Burrell Company purchased a machine for $58,000 on January 2, 2019. 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 $29,000 each year. The tax rate is 20%. Required: Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is the company's only asset. Straight-line method. If required, round to one decimal place. 2019 26.7 % 2020 34.3 2021 48 2022 80 2023 240 % Double-declining-balance depreciation method. Round to two decimal places. Round your intermediate dollar value calculations to the nearest whole number. 2019 % % 2020 2021 10 43.33 98.89 191.48 x 345.80 x 2022 2023Step by Step Solution
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