Depreciation by Two Methods Equipment acquired at the beginning of the fiscal year at a cost of $86,400 has an estimated residual value of $5,000 and an estimated useful life of 10 years. a. Determine the amount of annual depreciation by the straight-line methos. b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Depreciation Year 1 Year 2