The Salsbury Company purchased equipment costing \($10.000\) at the start of the year. The equip- ment has an estimated useful life of five years and a salvage value of \($2.000\) The CEO is unsure if the company should use the straight-line method ar the double-declining balance method to depreciate the new equipment.

Required: Prepare the journal entry for depreciation for the second year under each of the alternative depreciation accounting methods.