II. Assume that a machine is costing $300,000 and having a useful life of five years (with no salvage value).Required: a. Compute depreciation for year 1 and year 2 using

Straight line

double declining balance b. Compute average useful life of the asset for year 1 using straight line depreciation c. If double declining balance is used to compute the depreciation, how much gain or loss is reported at the end of year 2

if the sales price of the asset is

$150,000 cash

$ 200,000 cash

$120,000 cash