1. In "a" below, explain why the annual depreciation schedules for Straight-Line Depreciation (SLN) and Declining Balance Depreciation (DB) are different. In "b" below, explain which depreciation method would you recommend for Ms. Jants new startup business and why?

NE 2 3 Cost of Asset $24,000.00 4 Salvage Value $9,000.00 5 Useful Life 5 6 7 Straight Line Depreciation Depreciation Accumulated Book value expense for depreciation at at end of 8 End of Year year end of year year 9 1 $3,000.00 $3,000.00 $21,000.00 10 2 $3,000.00 $6,000.00 $18,000.00 11 3 $3,000.00 $9,000.00 $15,000.00 12 4 $3,000.00 $12,000.00 $12,000.00 13 5 $3,000.00 $15,000.00 $9,000.00 14 15 16 Declining-Balance Depreciation Depreciation Accumulated Book value expense for depreciation at at end of 17 End of Year year end of year year 18 1 $4,272.00 $4,272.00 $19,728.00 19 2 $3,511.58 $7,783.58 $16,216.42 20 3 $2,886.52 $10,670.11 $13,329.89 21 $2,372.72 $13,042.83 $10,957.17 22 5 $1,950.38 $14,993.20 $9,006.80 23 uw N 4 5