Franklin Fisheries purchased new equipment to help make larger tanks on January 1, 2008. The equipment cost them $36,000,000 and has an expected salvage value of $90,000 at the end of its 9 year useful life. Franklin Fisheries uses the Sum-of-the-Years-Digits method to calculate depreciation. The company has a calendar year end and a 30% tax rate.

1. What is the amount of depreciation Franklin Fisheries should record on December 31, 2009 for this equipment?

2. What is the amount of accumulated depreciation Franklin Fisheries will have on its books for this new equipment as of January 1, 2011?

3. What is the current book value of the equipment on December 31, 2016?

4. Now assume that the new equipment was purchased on August 15, 2008 instead of January 1, 2008. If Franklin originally recorded a full year of depreciation for this equipment, make any necessary journal entries on December 31, 2008 to correctly record the equipment using partial year depreciation.

5. Before making the correcting entry for partial year depreciation on December 31, 2008, Franklin reported total assets of $250,000,000, net sales of $125,000,000, and net income of $25,000,000. Assuming that Franklin has 20,000,000 shares of common stock issued and outstanding, what were Franklin's EPS, ROA, Profit Margin, and Asset Turnover ratios before the correcting entry? What are they after the correcting entry? Round each ratio to two (2) decimal places. (Hint: Since you don't have any information from 2007, you will have to use the reported totals instead of averages!)