Page 1 of 2 Practice - Chapter 1-The Depreciation tion Process Parson Company purchased a stamping machine for $480,000 on January company expects to use the machine for five years. Managers stamping machine is used for five years, it can be sold for $70,000. anticipate that after the PROVIDE A SEPARATE SHEET OF PAPER SHOWING CALCULATIONS USED TO COMPLETE THE CHART BELow In the chart below, record the amount of depreciation expense that would record under each method for the years indicated. Straight-Line Double-Declining Balance 2008 32, 2009 S 8206 2010 310s S 30 72 2011 s_g2.??? 2012 ,0 Based on your work above, answer the questions below, assuming each is s IIS,2.0 separate and independent from the others. a. What is the differential impact on Parson Company's 2008 net income if the company chooses straight-line depreciation or the double-declining balance method? b. How would the stamping machine be reported on Parson Company's balance sheet as of December 31, 2009 if straight-line depreciation had been used? Machine Accumulated Depreciation