Required information

Use the following information for the Exercises below.

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Tory Enterprises pays $258,400 for equipment that will last five years and have a $45,600 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,500 annually, after deducting all expenses except depreciation.

Exercise 10-9 Straight-line depreciation and income effects LO P1

Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming straight-line depreciation. (Enter all amounts positive values.)

	Income Before Depreciation	Depreciation Expense	Net (Pretax) Income
Year 1
Year 2
Year 3
Year 4
Year 5
Totals	$	$	$