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Walnut Ridge Production Inc. purchased a new computerized video - editing machine at a cost of $ 3 7 0 , 0 0 0 .

Walnut Ridge Production Inc. purchased a new computerized video-editing machine at a cost of $370,000. The system has a residual value of $57,000 and an expected life of 5 years. Compute depreciation expense, accumulated depreciation, and book value for the first 3 years of the machine's life using: The straight-line method and then The double-declining-balance method. 2. Which method would produce the largest income in the first, second, and third years of the asset's life?

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