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Messer Company purchased equipment for $24,000. The company is considering whether to determine annual depreciation using the straight-line method or the declining-balance method at 150

Messer Company purchased equipment for $24,000. The company is considering whether to determine annual depreciation using the straight-line method or the declining-balance method at 150 percent of the straight-line rate. Waller expects to use the equipment for 10 years, at the end of which it will have an estimated salvage value of $4,000.

Prepare a comparison of these two alternatives for the first two years Messer will own the equipment.

Straight line Depriciation- Year 1? Year 2?

150% Declining balanace depriciation- Year 1? Year 2?

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