statistics40987
Nov 6, 2012, 03:23 PM
Waller Company purchased equipment for $24,000. The company is considering whether to determine annual depreciation using the straight-line method or the declining-balance method at 150 percent of the straight-line rate. Waller expects to use the equipment for 10 years, at the end of which it will have an estimated salvage value of $4,000.
Prepare a comparison of these two alternatives for the first two years Waller will own the equipment. (Omit the "$" sign in your response.)
Year 1 Year 2
Straight-line depreciation $ $
150% declining-balance depreciation $ $
$ $
Prepare a comparison of these two alternatives for the first two years Waller will own the equipment. (Omit the "$" sign in your response.)
Year 1 Year 2
Straight-line depreciation $ $
150% declining-balance depreciation $ $
$ $