The sel's net book value after ty Cash flows from operations (excluding income taxes). Depreciation calculation methods Millco Inc. acquired a machine that const S1,200,000 carly in 2019. The machine is expected to last for eight years, and its enti mated salvage value at the end of its life is SI80.000 . the year. Exercise 6.13 LOS Required: Exercise 6.14 LO Required: As Using straight lie depreciation calculate the depreciation expense to be recognized in the first year of the machine's life and calculate the accumulated depreciation after the fifth year of the machine's life b. Using declining-balance depreciation at twice the straight-line rate, calculate the What will be the netbook value of the machine at the end of its cighth year of use before it is disposed of, under each depreciation method? Depreciation calculation methods Barefoot Industrial acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $117.000 and has an estimated useful life of four years and an estimated salvage value of $18,000. 2. Calculate depreciation expense for each year of the truck's life using: 1. Straight-line depreciation. 2. Double-declining-balance depreciation. b. Calculate the truck's net book value at the end of its third year of use under each depreciation method. c. Assume that Barefoot Industrial had no more use for the truck after the end of the third year and that at the beginning of the fourth year it had an offer from a buyer who was willing to pay $27.900 for the truck. Should the depreciation method used by Barefoot Industrial affect the decision to sell the truck? Present value calculations Using a present value table, your calculator, or a com- puter program present value function, calculate the present value of: a. A car down payment of $9,000 that will be required in two years, assuming an Exercise 6.15 LO 10 interest rate of 10%. The Blace the Cherson Cha Cha tor Chat for Module 02 TUB Ree Cha The Income Statement Statementet Cash Flows Explanatory Notes Weeks 8-9 Module 4 11/0 11/22 moview.photo 222 Part I Financial Accounting b. A lottery prize of $18 million to be paid at the rate of $900,000 per year for 20 years, assuming an interest rate of 10%. c. The same annual amount as in part b, but assuming an interest rate of 14%. d. A financing lease obligation that calls for the payment of $24,000 per year for 10 years, assuming a discount rate of 8%. Exercise 6.16 LO 10 Present vahest discount or a com 00