Problem 9-9A Pronghorn Corporation purchased machinery on January 1, 2017, at a cost of $310,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $24,000. The company is considering different depreciation methods that could be used for financial reporting purposes. Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate. STRAIGHT-LINE DEPRECIATION Computation End of Year Years Depreciable Cost x Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Book Value 2017 2018 2019 2020 DOUBLE-DECLINING-BALANCE DEPRECIATION Computation End of Year Book Value Beginning of Year * Depreciation Rate = Annual Depreciation Expense Accumulated Depreciation Years Book Value 2017 2018 2018 2019 2020 14,750 *Depreciation expense for 2020 under Double declining-balance is adjusted so that ending book value is equal to salvage value. LINK TO TEXT LINK TO TEXT Which method would result in the higher reported 2017 income? In the highest total reported income over the 4-year period? Straight-line Depreciation Double-declining-balance Depreciation Which method would result in the lower reported 2017 income? In the lowest total reported income over the 4-year period? Click if you would like to Show Work for this question: Open Show Work