LO9-1 through LO9-3, LO9-5 PROBLEM 9.3B Issues Involving Alternative Depreciation Methods the gain or loss reported in the company's income statement have any direct cash effects? Explain. Davidson, DDS, purchased new furniture for its store on May 1, 2015. The furniture is expected to have a 10-year life and no residual value. The following expenditures were associated with the purchase: Cost of the furniture. Freight charges Sales taxes. Installation of furniture Cost to repair furniture damaged during installation $11,000 375 550 75 400 Instructions a. Compute depreciation expense for the years 2015 through 2018 under each depreciation method listed below: 1. Straight-line, with fractional years rounded to the nearest whole month. 2. 200 percent declining-balance, using the half-year convention. 3. 150 percent declining-balance, using the half-year convention. b. Davidson, DDS, has two conflicting objectives. Management wants to report the highest pos- sible earnings in its financial statements, yet it als