6 ts eBook Print eferences Equipment costing $86,000 was purchased by Spence, Incorporated, at the beginning of the current year. The company will depreciate the equipment by the declining-balance method, but it has not determined whether the rate will be at 150 percent or 200 percent of the straight-line rate. The estimated useful life of the equipment is eight years. Prepare a comparison of the two alternative rates for management for the first two years Spence owns the equipment, assuming no salvage value at the end of eight years. Note: Do not round your intermediate calculations. Round your answers to the nearest dollar amount. Double-declining balance depreciation: 150% declining-balance depreciation: Year 1 Year 2

Equlpment costing $86,000 was purchased by Spence, Incorporated, at the beginning of the current year The compary will depreciate the equipment by the declining-balance method, but it has not determined whether the rate will be at 150 percent or 200 percent of the straight-line rate. The estimated useful ife of the equipment is eightyears. Prepare a comparison of the two alternative rates for management for the first two years Spence owns the equipment assuming no salvege value at the end of eight years Note: Do not round your intermediate calculations. Round your answers to the nearest dollar amount