Albany Corp acquired a machine on July 1, 2010 at a cost of 32,000. The machine has an estimated salvage value of $2,000 at the end of its four-year life. Albany has a December 31 year end.
Compute depreciation expense for the years 2010 and 2011 and show the book value of the machine on December 31, 2011 using each method below
(i) straight line depreciation
(ii) sum of the years digits method
(iii) double declining balance method