JKL Enterprises purchased machinery on January 1, 2023, for $500,000. The machinery has an estimated useful life of 10 years and an estimated salvage value of $50,000.

Requirements:

1. Calculate the annual depreciation expense using the Straight-Line method.
2. Determine the depreciation expense for the second year using the Double-Declining Balance method.
3. Compute the book value at the end of the third year using the Straight-Line method.
4. Evaluate the impact on net income if the machinery is sold at the end of the third year for $350,000.
5. Discuss the advantages and disadvantages of using the Double-Declining Balance method.