Question 1:

ABC Corporation has purchased machinery on January 1, 2024, and needs to compare two depreciation methods: straight-line and double-declining balance

This machinery costs $400,000 and has an

estimated usetuate of

four years, or 8.000 machine hours

At the end of tour vears

the machinerv is estimated to have a residual value of $20.000

Requirements

1- Prepare depreciation schedules for straight-line and double-declining-balance ( 20 points)

2- At December 31, 2024, ABC Company is trying to determine if it should sell the machinery. ABC Company will only sell the machinery if the company earns a gain of at least $6,000. For each of the depreciation methods, what is the minimum

amount that ABC Company will sell the machinery for in order to have a gain of $6,000? (20 points)