[statistics40987]

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 $ $

$ $

[paraclete]

This is not difficult to do so have a go and report any difficulties

[statistics40987]

this is not difficult to do so have a go and report any difficulties

Well, I have tried and I got some key words that may help you solve it:

purchased equipment for $24,000
150 percent of the straight-line rate
10 years
estimated salvage value of $4,000

So for the first portion I took $24,000 - $4,000 = $20,000 and I divided all by the course of 10 years and I got $2000 for Straight-line depreciation ( Year 1 and 2)

That's what I have so far,

Thanks a lot for your help.