Exercise 9-12 Income statement effects of alternatlve depreclation methods L02 eXcel CHECK FaURE: b. Depreciation expense, Year 3 S64.344 Kenartha Oil recentlg paid $470,400 for equipment that will last five gears and have a residual value of $105,000. By using the machine in its operations for five years, the compang expects to earn $171,000 an- nually, after deducting all expenses except depreciation Complete the schedule below assuming each of (a) straight-line depreciation and (b) double declining-balance dep -Year Profit before deprecistion Depreciation experse Profit Anaiysis Component If Kenartha Oil wants the Year I balance sheet to show the highest value possible for the equipment, which depreciation method will it choose? Explain