On April 1, 2011, Company A purchased equipment for $100,000. On the purchase, a sales tax of 15% is being paid. The equipment has defected, so a maintenance cost of $2000 is incurred for repairs. After the equipment arrives, the company must pay the transportation cost of $5000. The company also paid installation and testing costs of $20000. This equipment is estimated to have 5-year useful life. At the end of the 5th year, the salvage value (residual value) will be $20,000. Company A recognizes depreciation to the nearest whole month. Instructions:

Make a deprecation schedule

a. Using a double-declining balance depreciation method.

b. Using straight-line depreciation method.