Megan Corporation purchased machinery on January 1, 2025, at a cost of \(\$ 250,000\). The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of \(\$ 30,000\). The company is considering different depreciation methods that could be used for financial reporting purposes.

Instructions

a. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. (Round to the nearest dollar.)

b. Which method would result in the higher reported 2025 income? In the highest total reported income over the 4-year period?

c. Which method would result in the lower reported 2025 income? In the lowest total reported income over the 4-year period?