Tory Enterprises pays $242,400 for equipment that will last five years and have a $44,000 salvage value. By using the equipment in its operations for five years, the company expects to earn $88,900 annually, after deducting all expenses except depreciation.

Calculate annual depreciation expenses using double-declining-balance method.

	Depreciation for the Period			End of Period
Year	Beginning of Period Book Value	Depreciation Rate	Annual Depreciation	Accumulated Depreciation	Book Value
Year 1
Year 2
Year 3
Year 4
Year 5
Total

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. (Net loss should be entered with a minus sign.)

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