P11-1 (Depreciation for Partial PeriodSL, SYD, and DDB) Alladin Company purchased Machine #201 on May 1, 2014. The following information relating to Machine #201 was gathered at the end of May. Price $85,000 Credit terms 2 / 10, N / 30 Freight-in costs $800 Prep and installation costs $3,800 Labor costs during regular production operations $10,500 It was expected that the machine could be used for 10 years, after which the salvage value would be $0 Alladin intends to use the machine only 8 years, however, after which it expects to be able to sell it for $1,500 The invoice for Machine #201 was paid May 5, 2014. Alladin uses the calendar year as the basis for the preparation of financial statements. Instructions: "(a) (1) Compute the depreciation expense for the years indicated using the straight-line method for 2014. (Round to the nearest dollar.)" Total Cost = Price Amount Less: Credit terms Amount Freight-in costs Amount Prep and installation costs Amount Formula Salvage value Amount Total Cost = Formula Depreciable value Formula Life of the asset Number Annual depreciation exp Formula Partial year depreciation Formula 8 of 12 months of 2014 "(a) (2) Compute the depreciation expense for the years indicated using the sum-of-years'-digits method for 2015. (Round to the nearest dollar.) Utilize the Excel formula =SYD(Cost,Salvage,Life,Period)." (Round to the nearest dollar.) Formula Formula for last 4 of 12 months of first year Formula Formula for first 8 of 12 months of second year Formula Total for second calendar year "(a) (3) Compute the depreciation expense for the years indicated using the double-declining balance method for 2014. (Round to the nearest dollar.) Utilize the Excel formula =DDB(Cost,Salvage,Life,Period)." (Round to the nearest dollar.) Formula Formula for last 8 of 12 months of first year "(b) Suppose Kate Crow, the president of Alladin, tells you that because the company is a new organization, she expects it will be several years before production and sales reach optimum levels. She asks you to recommend a depreciation method that will allocate less of the companys depreciation expense to the early years and more to later years of the assets lives. What method would you recommend?" Enter text answer here.