Tory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,300 annually, after deducting all expenses except depreciation.

Exercise 8-9 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 fiveyear period, assuming straightline 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