Calculate the net income for years

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Problem - Stillman Company purchased a new machine at the start of its current year at a cost of $37,500. The machine is expected to serve for five years and to have a salvage value of $3,000. Ronald L. Stillman, the chief executive officer, has asked for information as to the effects of alternative depreciation methods.

Assume that in years 2 and 4 of the five-year life of this machine, revenues are $45,000 and costs and expenses other than depreciation are $25,000. Calculate the net income for years 2 and 4 using the same three depreciation methods.

Reference no: EM132723131

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