On January $1,$ Year $1,$ Diamond Brokers Company purchased a diamond cutting machine with a total cost of $$20,800.$ The company estimates that the machine will have a $20-$year useful life and a salvage value of $$2,400.$ The company has elected to depreciate the machine using the straight$-$line method.

Required:

a$.$ Determine the annual amount of depreciation expense to be recognized on the machine each year?

b$.$ Determine the amount of accumulated depreciation at the end of Year $3.$

a$.$ Annual depreciation

b$.$ Accumulated depreciation