Reminder: When populating the financial statements effects template make sure to write down: - the name of the account - the direction (+ or -) - the amount \$ Fxamnle: The firm naid off a $5.000 loan outstanding. TANGIBLE ASSETS - Problem 1 (6 points) Show your work a. Freeloads Corp. purchased a $300,000 machine on 1/1/2003, with an expected total useful life of 20 years and a salvage value of $40,000. Calculate the annual depreciation expense under the straight-line method. b. On 1/1/2007 Freeloads Corp. spends $40,000 in a capital improvement to upgrade the machine frame and correspondingly revises the estimate of the residual value to $58,000 and the estimate of total useful life to 27 years. Calculate the straight-line depreciation for 2007. c. On 2/1/2006 Freeloads Corp. spends $2,500 cash on regular repairs and maintenance of the machine. What's the financial statements effect