Indigo Corporation purchased machinery on January 1, 2022, at a cost of $292,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $34,200. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight- line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years Depreciable Cost X Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Valu 2022 $ 2023 2024 2025 DOUBLE-DECLINING-BALANCE DEPRECIATION Computation End of Year Years Book Value Beginning of Year x Depreciation Rate Deore = Annual Depreciation Expense Accumulated Depreciation Book Valu 2022 $ DOUBLE-DECLINING-BALANCE DEPRECIATION Computation End of Year Years Book Value Beginning of Bed Year Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Vall 2022 $ 2023 2024 2025 2,300 Depreciation expense for 2020 under Double declining-balance is adjusted so that ending book value is equal to salvage value. e Textbook and Media Which method would result in the higher reported 2022 income? In the highest total reported income over the 4-year period? e Textbook and Media Which method would result in the lower reported 2022 income? In the lowest total reported income over the 4-year period? Depreciation expense for 2020 under Double declining-balance is adjusted so that ending book value is equal to salvage value. e Textbook and Media Which method would result in the higher reported 2022 income? In the highest total reported income over the 4-year period? e Textbook and Media Which method would result in the lower reported 2022 income? In the lowest total reported income over the 4-year period? e Textbook and Media Save for Later Attempts: unlimited Submit