3. Depreciation by two methods
A machine was acquired on December 31 at a cost of $315 000. Its estimated useful life was 20 years. Assuming that it will have no residual value,
a. Determine the depreciation for each of the first two years by the straight-line method and the double declining method.
b. Make the accounting entry for the depreciation.
c. Comparing those two methods, what are the strength and weakness for them.