=+Determine the amount of depreciation expense for the years ended December 31, 2006, 2007, 2008, and 2009, by

(a) the straight-line method, and

(b) the double-declining-balance method.

New lithographic equipment, acquired at a cost of $175,000 at the beginning of a fiscal year, has an estimated useful life offive years and an estimated residual value of $15,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis ofthe data presented to the manager, the double-declining-balance method was selected. In the first week ofthe fifth year, the equip¬

ment was sold for $25,000.

Instructions