Veda Company bought a machine for $7,000. Its estimated life is 5 years. The residual value of the machine is $500.

1. Veda uses the declining-balance method at twice the straight-line rate. Calculate the first two years depreciation expense. (a.) Year 1 Depreciation Expense (b.) Year 2 Depreciation Expense
2. For tax purposes, Veda has requested the accountant to calculate what the depreciation expense will be for the class 5 piece of machinery over the first 3 years using MACRS. (a.) Year 1 Depreciation Expense (b.) Year 2 Depreciation Expense (c.) Year 3 Depreciation Expense