if ADT had always expensed its P7.34 Depreciation Choices and Outcomes. Reddie Co. purchased a new machine on January 1. The following costs? information pertains to the purchase: TA 1, 2 Sk Life of asset Salvage value. Purchase price Sales tax. Freight cost. Electrical set-up Custom programming. Estimated annual labor savings Additional revenue generated. 5 years $ 3,500 35,000 3,000 1.200 800 1,500 3.500 $ 8.000 Required Compute annual depreciation, accumulated depreciation, and the machine's book value for the first three Determine the capitalized cost of the new machine. b. years assuming i. Straight-line depreciation ii. Double-declining-balance method Assume the machine is sold for $9.000 at the end of the third year after depreciation has been calculated. Determine the gain or loss assuming i. Straight-line depreciation ii. Double-declining-balance method d. Given your answer in part c, if Mulligan was able to perfectly predict the future that the machine would be sold for $9,000 at the end of the third year, which depreciation method should Reddic choose? Ignore taxes