Chart of Accounts Income Statement General Journal Instrictions On January 1, Year 1, the Dole Company purchased an asset that cost $154,000 The asset had an expected useful Me of seven years and no estimated residual value. The company inally decided to use sum of the years digits (SYD) depreciation for both financial accounting and income tax purposes Depreciation expense for the straight ane method and the sun-of the-years-dighs method is as follows Year Straight-line over 7 Years SYD over 7 Years Difference 1 $22,000 $38.500 $16.500 2 22.000 33,000 11.000 3 22.000 27.500 5500 4 22.000 22.000 5 22.000 16.500 (5.500) N 22.000 11.000 (11.000) 7 22.000 $154.000 5500 5154.000 (15.500) 50 At the beginning of Year & Dole changed from the sum-of-the-years digits method to the straight-line method of depreciation for financial reporting purposes. The company's income tax rate is 30% in Year 3 and Year 4, Dole had $90,000 pretax income before depreciation and income taxes x