The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm.

Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/18 year-end financial statements for Company B:

Income StatementDepreciation expense$11,500

Balance SheetAssets:Plant and equipment, at cost$115,000Less: Accumulated depreciation(46,000)Net$69,000

You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $115,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero.

Required:

1.In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2015 through 2018 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets.

In order to compare performance with Company A, Estimate what E's depreciation expense would have been For 2015 through 2018 if the double - declining - balance depreciation method had been used by Company & since acquisition of the depreciable assets . Double - declining balance Year 1 12015) Year 2 1 2016) Year 3. 12017 ) Year $ 12018 )