View Policies Current Attempt in Progress Novak Company purchased Machine #201 on May 1, 2020. The following information relating to Machine #201 was gathered at the end of May. Price $ 127,500 Credit terms 2/10, 1/30 $ 1.200 Freight-in Preparation and installation costs Labor costs during regular production operations $ 5.700 $15.750 It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Novak intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $ 2.250. The invoice for Machine #201 was paid May 5,2020. Novak uses the calendar year as the basis for the preparation of financial statements. Compute the depreciation expense for the years indicated using the following methods. Depreciation Expense (1) Straight-line method for 2020 (2) Sum-of-the-years-digits method for 2021 $ (3) Double-declining balance method for 2020 $ e Textbook and Media Suppose Debra Kine, the president of Novak tells you that because the company is a new organization, she expects it will be several years before production and sales reach optimum levels. She asks you to recommend a depreciation method that will allocate less of the company's depreciation expense to the early years and more to later years of the assets lives. What method would you recommend? e Textbook and Media