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Broadening Your Perspective 10-5 ompany uses the dedlining-balance that are similar in many respects. One difference is that Pinson Company uses the straight-line method and

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Broadening Your Perspective 10-5 ompany uses the dedlining-balance that are similar in many respects. One difference is that Pinson Company uses the straight-line method and Estes C Pinson Company and Estes Company are two proprietorships method at double the straight-line rate. On January 2, 2015, both companies acquired the depreciable assets shown below Salvage Value Asset Cost Useful Life Buildings $310,000 $30,000 Equipment 104,000 40 years 10 years 4,000 Induding the appropriate depreciation charges, annual net income for the companies in the years 2015, 2016, and 2017 and total income for the 3 years were as follows 2015 2016 2017 Total Pinson Company $82,500 $86,900 $88,500 $257,900 Estes Company 0,000 78,000 87,000 235,000 At December 31, 2017, the balance sheets of the two companies are similar except that Estes Company has more cash than Pinson Company. Lynda Peace is interested in buying one of the companies. She comes to you for advice Answer the following Determine the annual depreciation recorded by each company during the 3 years.(Round answers to O decimal places, e.g. 2,125.) Pinson Company Estes Company 2015 2016 2017

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