Miles Company purchased a machine on January 1, 2014, by paying cash of $400,000. The machine has an estimated useful life of five years, is expected to produce 500,000 units, and has an estimated residual value of $40,000.

A. Calculate depreciation expense to the nearest whole dollar for each year of the machine's useful life under

1. Straightline depreciation method.

2. Double decliningbalance method.

B. What is the book value of the machine after three years using the double decliningbalance method?

C. What is the book value of the machinery after three years using the straightline method? D. If the machine was used to produce and sell 140,000 units in 2014, what would be the depreciation expense using the unitsofproduction method?