Question
Clark Kent owns Superhero Emporium. On April 1, 2016, Clark decided to purchase a new piece of equipment costing $65,000, with a useful life
Clark Kent owns "Superhero Emporium". On April 1, 2016, Clark decided to purchase a new piece of equipment costing $65,000, with a useful life expectancy of 8 years and a salvage value of $3,000. Clark is not sure whether to use the Straight-Line Method of Depreciation or the Declining Balance Method of Depreciation. For the declining balance method, he wants to use a double declining rate. To help him decide, you will complete the tables below for both methods and then provide your final recommendation. You do not need to calculate all 8 years of depreciation, just the years indicated in the tables. Make sure to show your work and round all answers to two decimal places.
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