Cheyenne Corporation purchased machinery on January 1, 2017, at a cost of $ 340,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $ 32,000. The company is considering different depreciation methods that could be used for financial reporting purposes.

Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.

^* Depreciation expense for 2020 under Double declining-balance is adjusted so that ending book value is equal to salvage value.

STRAIGHT-LINE DEPRECIATION Computation YearsDepreciable CostxDepreciation RateAnnual Depreciation Expense 2017 $ 2018 2019 2020 End of Year Accumulated Depreciation Book Value DOUBLE-DECLINING-BALANCE DEPRECIATION Computation Book Value Beginning of Year Years Depreciation Rate Annual Depreciation Expense A x 2017 $ 2018 2019 2020 10,500 ON End of Year Accumulated Depreciation Book Value Which method would result in the higher reported 2017 income? In the highest total reported income over the 4-year period? eTextbook and Media Which method would result in the lower reported 2017 income? In the lowest total reported income over the 4-year period? eTextbook and Media