On June 1, 2021, Tesla company purchased a machine for use in its production process. Information concerning the machine is summarized as follows. Teslas reporting period is from January 1 to December 31. Cost $210,000, Salvage Value $20,000 and Useful Life in Years 5.

Required

a) Prepare depreciation schedule under the declining balance method. The company uses the double declining rate.

b) Straight-line method

i. Calculate the amount of accumulated depreciation at December 31, 2022.

ii. Suppose the machine was sold for $150,000 on January 01, 2023. Prepare the journal entry for the sale of the machine.

iii. In 2023, the company determined that the total estimated life should be 8 years with a salvage value of $10,000. Calculate the depreciation expense for 2023.