Community Theatre rents its premises from the Community Shopping Centre. The theatre has been open for a month and management wants to find out if the business has made a profit or a loss. Using the additional information, follow the suggested procedure to complete the task. Additional Information The straight-line depreciation method is used by Community Theatre. The projection equipment and furniture depreciates by 20 percent of the original value per year and will have no residual value. Note: Calculate the depreciation to the nearest dollar value Rent was prepaid for three months on January 1. Insurance was prepaid for three months on January I. Office supplies on hand on January 31 were valued at $260