Martindale Motors purchased a machine that will help diagnose problems with engines.The machine cost $210,000 on January 1,2014 and a residual value of $10,000 was anticipated,with a useful life of 5 years.In 2014,Martindale Motors has a gross profit of $400,000 and operating expenses of $180,000.
Martindale Motors has a tax rate of 35%.
Required:
1.Compute the Depreciation Expense for 2014 under both the straight-line and double-declining balance depreciation methods.
2.What is the net cash saved if the accelerated depreciation method is used in 2014?

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The Answer of Martindale Motors purchased a machine that will help diagnose problems with engines.The machine cost $210,000 on January 1,2014 and a residual value of $10,000 was anticipated,with a useful life of 5 years.In 2014,Martindale Motors has a gross profit of $400,000 and operating expenses of $180,000.
Martindale Motors has a tax rate of 35%.
Required:
1.Compute the Depreciation Expense for 2014 under both the straight-line and double-declining balance depreciation methods.
2.What is the net cash saved if the accelerated depreciation method is used in 2014?

Martindale Motors Purchased a Machine That Will Help Diagnose Problems