Gandolfi Construction Co. purchased a CAT 336DL earth mover at a cost of $355,000 in January 2019. The companys estimated useful life of this heavy equipment is 20 years, and the estimated salvage value is $78,000. Assume that Gandolfi Construction Co. calculated depreciation expense for the CAT 336DL earth mover on the straight-line method and reported $522,900 of net income for the year ended December 31, 2019. The companys average total assets for 2019 were $3,150,000.

Required: a. Calculate Gandolfi's ROI for the year ended December 31, 2019. ROI Return On Investment for the year ended December 31, 2019 Choose Numerator: | Choose Denominator: Net income | Average total assets 1 ROI b. Calculate what Gandolfi's ROI would have been for the year ended December 31, 2019, had the company used the double-declining-balance depreciation method for the CAT 336DL earth mover. Ignore the effects of income taxes. Return On Investment for the year ended December 31, 2019 Choose Numerator: 1 Choose Denominator: ROI Net income / Average total assets ROI / =