On August 3. Cinco Construction purchased special purpose equipment at a cost of $6,500,000. The useful We of the equipment was estimated to be eight years, with an estimated residual value of $70.000 a. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-ine depreciation method (half year convention. b. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining balance method (half-year convention with a switch to straight-line when it will maximize depreciation expense. c. Which of these two depredation methods (straight-line or double declining balance) results in the highest net income for tinandal reporting purposes during the first two years of the equipment's use? Complete this question by entering your answers in the tabs below. Picquired Required Required Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method half year convention) with a switch to straight-line when it will maximize depreciation expense Adjust year 9 depreciation if necessary, so that the total depreciation expense equal depreciable value of the bot Do not found intermediate calculations and round your final answers to the nearest whole number) Show less Required A Required B Requred Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining balance method (half-year convention with a switch to straight-line when it will maximize depreciation expense. (Adjust year 9 depreciation if necessary, so that the total depreciation expense equals depreciable value of the asot. Do not round intermediate calculations and round your final answers to the nearest whole number) Show less Your 200% Declining Balance (Half- Year Convention 1 2 3 4 5 6 7 Totals $ 0 On August 3. Cinco Construction purchased special purpose equipment at a cost of $6,500,000 The useful le of the equipment was estimated to be eight years, with an estimated residual value of $70,000 a. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straightine depreciation method (hall-year convention), b. Compute the depredalion expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining balance method (hall yeat convention) with a switch to straight line when it will maximize depredallon expense c. Which of these two depreciation methods (straight line or double decining balance) results in the highest net income for financial reporting purposes during the first two years of the equipment's use? Complete this question by entering your answers in the tabs below. Ficoured Required B Required Which of these two depreciation methods (straight line or double declining balance) results in the highest net income for financial reporting purposes during the first two years of the equipments us? Doprocation method which resuts in the highest net income for the first two years is
