A tractor acquired on January 1 at a cost of $144,000 has an estimated useful life of six years. Assume that it will have no residual value.

Note: When calculating the depreciation rate, if the rate is not a whole number, carry the decimal place out at least six places. For example, if the straight-line rate is 6.666666...%, do not round; carry it out as many places as you can before doubling it to get the double-declining-balance rate.

a. Determine the depreciation for each of the first two years by the straight-line method.

	Depreciation
First year	$
Second year	$

b. Determine the depreciation for each of the first two years by the double-declining-balance method.

	Depreciation
First year	$
Second year	$