Question: Quick Movers purchased a new machine for $80,000. It depreciates the machine over a five-year period, using the straight-line method of depreciation. At the end

Quick Movers purchased a new machine for $80,000. It depreciates the machine over a five-year period, using the straight-line method of depreciation. At the end of the life the machine is expected to be scrapped with no residual value.

Required:

Show your working for each of the following:

a. Calculate depreciation expense for each of the first 2 years. (2 points)

b. Calculate the book value of the machine at the end of Year 2. (2 points)

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