Return on Assets On January 1, 1997, Johnson Corporation invested $800,000 in equipment with an expected useful life of twenty years and an anticipated residual value of $50,000. In 2000, Johnson reported sales of

$1,100,000 and operating costs other than depreciation of

$900,000. At December 31, 2000, Johnson held $100,000 of assets in addition to its equipment.

a. Assuming Johnson uses straight-line depreciation, what amount of net income will it report for 2000? What will be the return on assets for 2000 using total assets reported at December 31, 2000?

b. Assuming Johnson uses double-declining-balance depreciation, what amount of net income will it report for 2000? What will be the return on assets for 2000 using total assets reported at December 31, 2000?

c. For what type of asset would it be most appropriate to use double-declining-balance depreciation?