=+E7-10 Depreciation by two methods Obj 2

/

a. $9,500 A storage tank acquired at the beginning ofthe fiscal year at a cost of $86,000 has an esti¬

mated residual value of $10,000 and an estimated useful life of eight years. Determine the following:

(a) the amount of annual depreciation by the straight-line method and

(b) the amount of depreciation for the first and second year computed by the double-decliningbalance method.