Question #$4$ Fixed Assets and Depreciation calculations $(4$ parts, $10$ total points$)$

Stark Enterprises purchased a high$-$tech laser cutter on January $1,2022,$ at a cost of $$56,000.$ Stark

estimated that the laser cutter would have a useful life of $4$ years and a residual value of $$5,600.$ The

company also expects $24,000$ hours of use over the useful life of the machine as follows: $2,000$ hours in

$2022,8,000$ hours in $2023,7,000$ hours in $2024,$ and $7,000$ hours in $2025.$

Required:

A$.$ Assuming Stark uses the double$-$declining balance method of depreciation, calculate depreciation

expense for the year ended December $31,2024.$ SHOW YOUR WORK! $(3$ points$)$

You may use the following table to show your work:

B$.$ Assuming the company uses the straight$-$line method of depreciation, what is the net book value of

the machine as of December $31,2023?(2$ points$)$

C$.$ Assuming the company uses the units of production method of depreciation, what is the net book

value of the machine as of December $31,2024?(3$ points$)$

D$.$ Which of the three methods, straight$-$line, units of production, or double$-$declining balance would a

manager choose to provide Stark's highest net income in $2024?(2$ points$)$