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Use the depreciation schedule below for the three depreciation methods: 225,000 45,000 Machine purchase price (with cash) Machine Salvage value Machine Estimated useful ife Sold
Use the depreciation schedule below for the three depreciation methods: 225,000 45,000 Machine purchase price (with cash) Machine Salvage value Machine Estimated useful ife Sold at the end of vear 4 ffor cashl 28.000 Sum of the yeers Depreciation Double ob 45,000 Totels (A) Can't depreciate below salvage and, accordingly, must switch to straight-line method at appropriate time (a) What is the $ effect on working-capital in year 1? (b) What is the $effect on capital expenditures in year 1? (c) ignoring accumulated depreciation, what is the $ effect on total assets in year 1? (d) What is the gain or loss on selling the machine in year 4? (e) What is the $ effect on retained earnings as of the end of year 4
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