Equipment costing $790,000, with an expected scrap value of $80,000 and an estimated useful life of five years, was purchased on January 1 of the current year. Straight Line Method Long Term Assets Year 1 Year 2 Property Plant & Equipment Equipment 790,000 790,000 Accumulation Depreciation 142,000 506,000 Double Declining Balance Method Year Depreciation Expense Calculation EoY Period Book Value Year1 316,000 2/5 790K-316K 474,000 Year 2 189,600 2/5 (790K-316K) 284,400 Required: Calculate the depreciation expense for the first two years of the asset's useful life using (a) the straight-line method and (b) the double-declining balance method. Which method would you prefer to use for (a) income tax purposes and (b) financial reporting purposes? Why?