Exercise 7-52 (Algorithmic) Choice Among Depreciation Methods Walnut Ridge Production Inc. purchased a new computerized video editing machine at a cost of $370,000. The system has a residual value of $56,200 and an expected life of 5 years. Required: 1. Compute depreciation expense, accumulated depreciation, and book value for the first 3 years of the machine's life using: a. The straight-line method. End of Year Book Value Depreciation Expense Accumulated Depreciation $ 3,700 b. The double-declining-balance method. End of Year Book Value Depreciation Expense Accumulated Depreciation 2. Which method would produce the largest income in the first, second, and third years of the asset's life? Check My Work