c.Depreciation of property, plant, and equipment. Method for book: any of the systematic and rational allocation methods (straight-line, SOYD, Double declining balance method, etc) can be used. Method for tax: Generally MACRS, but let us say the company uses the double declining balance method for this example On January 1, 2016, Wise Company purchased a piece of equipment at its fair market value of $610,000. Wise Company expects to use the asset for 8 years and also expects residual value of $15,000 at the time of disposal. The straight-line method of depreciation is used for book purposes while the double declining balance method is to be used for tax purposes. GIo,000-1500o 645,000 & ,375 G/0000x 25 152,5 00 Therefore, such amounts are d.Fines for violation of laws/regulations