Question: Talia's Tutus bought a new sewing machine for $55,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line. Required:

Talia's Tutus bought a new sewing machine for $55,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line.

Required:

a. Find the depreciation charge each year.

b. If the sewing machine is sold after 3 years for $25,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?

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