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.

Year 1 Year 2 Straight-line depreciation $ $

Year 1 Year 2 150% declining=balance depreciation $ $