You have recently been hired as the Controller for a large publicly-traded company that has experienced significant operating losses for the past few years, which has caused a sharp decline in the companys stock price. The CFO has asked you to prepare a memo (about 1 page) to discuss the following topic:

• The company is anticipating purchases of significant property and equipment during the next 12 months. What are your considerations and recommendations on whether to use either the straight-line depreciation method or the double-declining-balance depreciation method?