(1) Straight-line depreciation.

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(1) Straight-line depreciation. At the beginning of Year 1, Auto Manufacturing purchased a new computerized assembling machine for $95,000. It is expected to have a five-year life and a $20,000 salvage value. Required a. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (2) Double-declining-balance depreciation. b. Record the purchase of the assembly machine and the depreciation expense for the first year under the straight-line and double-declining-balance methods in a financial statements model. c. Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses Narration/Animation Script: In this exercise, we will compute the depreciation for each of the five years using the straight-line method and the double-declining method. We will also record the purchase of the machine and the depreciation expense in a financial statements model and prepare journal entries to record depreciation expense.