BALLS AND BATS INC. PURCHASE EQUIPMENT ON JANUARY 1 2005 AT A COST OF 100,000....
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BALLS AND BATS INC. PURCHASE EQUIPMENT ON JANUARY 1 2005 AT A COST OF 100,000. THE ESTAIMATED USEFUL LIFE IS 4 YRS WITH SALVAGE VALUE OF 10,000. 1. PREPARE TWO DIFFERNT DEPRECIATION SCHEDULES FOR THE EQUIPMENT- ONE USING THE DOUBLE -DECLINING BALANCE METHOD, AND THE OTHER USING THE STRAIGHT-LINE METHOD.(ROUND TO THE NEAREST DOLLAR)2. DETERMINE WHICH METHOD WOULD RESULT IN THE GREATEST NET INCOME FOR THE YEAR ENDING DECEMBER 31,2005.3. HOW WOULD TAXES AFFECT MANAGEMENT CHOICE BETWEEN THESE TWO METHODS FOR THE FINANCIAL STATEMENT?
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