For the year 20X1, the Landmark Restaurant had sales of $800,000 and expenses of $700,000 excluding depreciation. The building is being leased and the only depreciation asset is equipment in the amount of $100,000. The equipment has a life of ten years with zero salvage value.

Require:

Calculate the earnings before tax for 20X1 if:

1. The equipment is depreciated under straight-line depreciation

2. The equipment is depreciated under double-declining balance depreciation