On April 2, 2017, AlJalai Inc. acquired a new machine. The cost was $180,000 with a residual value of $20,000 at the end of its estimated useful lifetime of 5 years.

Instructions

1. Prepare a complete depreciation schedule, beginning with calendar year 2017, under each of the methods listed below (with fractional years rounded to the nearest whole month):
   1. Straight-line (10 points)
   2. 200 percent declining-balance (10 points)
   3. 150 percent declining-balance (10 points)
2. Assume that AlJalai Inc. sells the machine on December 31, 2019, for $75,000 cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a. (5 points)