Tory Enterprises pays $275,000 for equipment that will last five years and have a $49,500 salvage value. By using the equipment in its operations for five years, the company expects to earn $78,100 annually, after deducting all expenses except depreciation.

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

	income before depreciation	depreciation expense	net (Pretax) income
year 1
year 2
year 3
year4
year 5
totals