Depreciationby Two Methods

A storage tank acquired at the beginning of the fiscal year at a cost of $75,000 has an estimatedresidual valueof $10,000 and an estimated useful life of 20 years.

a.Determine the amount of annual depreciation by thestraight-line method.

$

b.Determine the amount of depreciation for the first and second years computed by thedouble-declining-balance method.

DepreciationYear 1$Year 2$