Question
Tory Enterprises pays $245,400 for equipment that will last five years and have a $44,300 salvage value. By using the equipment in its operations for
Tory Enterprises pays $245,400 for equipment that will last five years and have a $44,300 salvage value. By using the equipment in its operations for five years, the company expects to earn $89,200 annually, after deducting all expenses except depreciation.
Calculate annual depreciation expenses using double-declining-balance method. (Enter all amounts positive values.)
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.)
Depreciation for the Perioc End of Period Beginning of Period Book DepreciationA Annual Accumulated Depreciation Depreciation Year Book Value Rate Value Year 1 Year 2 Year 3 Year4 Year 5 Total Income Before Depreciation Net (Pretax) Depreciation Expense Income (Loss) Year 1 Year 2 Year 3 Year 4 Year 5 Totals
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