a. Waller Company purchased equipment for $24,000. The company is considering whether to determine annual depreciation using the straight-line method or the declining-balance method at 150 percent of the straight-line rate. Waller expects to use the equipment for 10 years, at the end of which it will have an estimated salvage value of $4,000.

Prepare a comparison of these two alternatives for the first two years Waller will own the equipment. (Omit the "$" sign in your response.)

Year 1 Year 2

Straight-line depreciation YEAR 1 1. $ ______ YEAR 2 2. $__________

150% declining-balance depreciation YEAR 1 3. $_______ YEAR 2 4.$ _________

TOTAL FOR YEAR 1 5. $ _______ TOTALY FOR YEAR 2 6. $__________