Question: Teague Company purchased a new machine on January 1, Year XXX1, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life. Smith produced 70,000 units in Year XXX1 and 110,000 units during Year XXX2. Required: a) Determine the amount of depreciation expense to be recorded on the machine for the years XXX1 and XXX2 using straight-line method, units of production method and double-declining balance method of depreciation. b) If Teague Company sells the machine on January 1, Year XXX3 for $120,000, how much loss or gain would that result in using straight-line method, units of production method and double-declining balance method of depreciation.