Question $4$

Macon Bacon Assembly Company purchased a machine on January $2,2024,$ by paying cash of $$25,000$ and signing a $6\%$ note payable for $$60,000$ repayable over $3$ years at $$20,000$ per year plus interest annually. The machine has an estimated useful life of five years $($or the production of $200,000$ units$)$ and an estimated residual value of $$5,000.$

Required:

Determine depreciation expense $($to the nearest dollar$)$ for each year of the machine's useful life under $($a$).$ straight$-$line depreciation; and $($b$).$ the double declining balance method.

What is the book value of the machine after three years with the double declining$-$ balance method?

What is the book value of the machinery after three years with straight$-$line depreciation?

If the machine was used to produce and sell $48,000$ units in $2024,$ what would the depreciation expense be under the units of production method.