Deprecation by Two Methods Sale of Red Asset New tire retreading equipment, acquired at a cost of $110,000 on September 1 at the beginning of a fiscal whes an estimated We of four years and an estimated residual value of $7,500. The manager requested formation regarding the effect of alternative methods on the amount of depreciation expers each yea. the basis of the data presented to the manager, the double-declining method was selected In the Enst week of the fourth year, on September 6, the equipment was sold for $18,000 Required 1. Determine the annual depreciation opens for each of the estimated four years of the comid depreciation at the end of each year, and the book of the equiment at the end of each year by ta the straight-line method and (b) the double-dedining balance method . She method Depreciation Accumulated Depreciation Book Value Year Expense End of Year End of Year 1 25,625 25,625 54,375 2 25.625 51.250 58. 3 25,625 76,875 3,125 25,625 102,500 7,500 b. Double-balance Depreciation Accumulated Depreciation Book Value Year Expense End of Year End of Year 1 35,000 55.000 55.000 2 23.500 12,500 27.500 4 Prior AL MacBook BO 888