On january 1, 2018, sanderson, inc. acquired a machine for $1,110,000. the estimated useful life of the asset is five years. residual value at the end of five years is estimated to be $103,000. what is the book value of the machine at the end of 2019 if the company uses the straight-line method of depreciation?

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?