! Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Tory Enterprises pays $255,400 for equipment that will last five years and have a $45,300 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,200 annually, after deducting all expenses except depreciation. Exercise 8-10 Double-declining-balance depreciation LO P1 Calculate annual depreciation expenses using double-declining-balance method. Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming double-declining-balance depreciation. End of Period Depreciation for the Period Beginning of Period Depreciation Annual Book Rate Depreciation Value Year Accumulated Depreciation Book Value $ 255,400 40% $ 102,160 $ 102,160 $ 153,240 Year 1 Year 2 Year 153,240 40% 61,296 163,456 91,944 91,944 40% 36,778 200,234 55,167 55,167 40% 22,067 X 222,301 X 33,100 X Year 4 Year 5 Total 33,100 X 40% 13,240 X 235,541 19,860 X $ 235,541 Income Before Depreciation Net (Pretax) Depreciation Expense Year 1 $ $ $ 90,200 90,200 102,160 61,296 Income (Loss) (11,960) 28,904 Year 2 Year 3 90,200 36,778 Year 4 22,067 X 53,422 68,134 X 76,960 X 215,460 90,200 90,200 451,000 Year 5 13,240 X 235,541 Totals $ $ $