a.

Estimated useful life	5 years
Cost of machine	$44,000
Estimated salvage value	(6,000)
Amount to be depreciated	$38,000

     1.  Straight?line depreciation:

                Annual depreciation expense = $38,000 / 5 = $7,600 per year

     2.  Double?declining?balance depreciation:

               Straight?line rate = 1 / 5 = 20%.  Double-declining rate = 20% * 2 =  40%

				At End of Year       .
		Net Book Value	Depreciation	Accumulated	Net Book
Year	at Beginning of Year		Expense	Depreciation         Value
1	$44,000		$44,000 * 40% = $17,600	$17,600	$26,400
2	26,400		26,400 * 40% =   10,560	28,160	15,840
3	15,840		15,840 * 40% =     6,336	34,496	9,504
4	9,504 3,801#		9,504 * 40% =	38,297              5,703#

# This is the calculated amount, but the net book value cannot go below salvage value, so depreciation expense in the fourth year is limited to $3,504, as follows:

4	9,504	3,504	38,000	6,000
5	6,000	0	38,000	6,000

     3.  150% Declining?balance depreciation:

              Straight?line rate = 1 / 5 = 20%.  150% declining rate = 20% * 1.5 = 30%

			At End of Year
	Net Book Value	Depreciation	Accumulated       Net Book
Year	at Beginning of Year	Expense	Depreciation         Value
1	$44,000	$44,000 * 30% = $13,200	$13,200           $30,800
2	30,800	30,800 * 30% =     9,240	22,440             21,560
3	21,560	21,560 * 30% =     6,468	28,908             15,092
4	15,092	15,092 * 30% =     4,528	33,436             10,564
5	10,564	10,564 * 30% =    3,169#	36,605               7,395#

# This is the calculated amount, but the net book value at the end of the asset’s useful life should be equal to its estimated salvage value.  Thus, Freedom Co. would have to record an additional $1,395 of depreciation expense in the fifth year ($7,395 net book value at the end of year five - $6,000 salvage value).  Thus, total depreciation expense in the fifth year would be $4,564 ($3,169 computed amount + $1,395 required adjustment).  An alternative approach would be to record $1,395 as depreciation expense in the sixth year of the asset’s life (assuming that the machine is still being used).