Wacky Motors purchased a machine that will help diagnose problems with engines. The machine cost $300,000 on January 3, 2012 and had a residual value of $20,000, with a useful life of 7 years. Calculate the depreciation expense and book value as of December 31, 2012 under both the straight-line and DDB methods.

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The Answer of Wacky Motors purchased a machine that will help diagnose problems with engines. The machine cost $300,000 on January 3, 2012 and had a residual value of $20,000, with a useful life of 7 years. Calculate the depreciation expense and book value as of December 31, 2012 under both the straight-line and DDB methods.

Wacky Motors Purchased a Machine That Will Help Diagnose Problems