Nova Company purchased a large embroidering machine with a list price of $75,000. The seller gave Nova company a 5% discount for paying cash. The delivery terms were FOB shipping point of $1000. The machine has a salvage value of $6000 and a useful life of 5 years. Determine the amount to be capitalized in the asset account for the machine.

Using straight line depreciation, what is depreciation expense in year 1 for Nova Co?

Under straight line depreciation how much is in the balance in the account accumulated depreciation on the balance sheet in year 2 for Nova Co?

Under Double Declining Deprecation method, what is depreciation expense year 1 For Nova Co?

Under Double Declining Deprecation method, what is depreciation expense year 2 for Nova Co?