Our company purchased a CNC lathe with an estimated useful life of 8 years. Cost of the equipment was $79,900 and the salvage value is estimated to be $9,000 at the end of its useful like.

a) For your company financial records, you use the 150% declining- balance depreciation method. What is the depreciation amount you would record in your company financial records for the 3rd year of the assets life?

b) If instead you use the straight- line method of depreciation, what would be the depreciation amount you would record in you company financial records for the 3rd year of the assets life? How much depreciation would you record in the 8th year of the assets life?