Tory Enterprises pays $242,400 for equipment that will last five years and have a...
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Accounting
Tory Enterprises pays $242,400 for equipment that will last five years and have a $44,000 salvage value. By using the equipment in its operations for five years, the company expects to earn $88,900 annually, after deducting all expenses except depreciation.
Calculate annual depreciation expenses using double-declining-balance method.
Depreciation for the Period
End of Period
Year
Beginning of Period Book Value
Depreciation Rate
Annual Depreciation
Accumulated Depreciation
Book Value
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming double-declining-balance depreciation. (Net loss should be entered with a minus sign.)
Income Before
Depreciation
Net (Pretax)
Depreciation
Expense
Income (Loss)
Year 1
$
year 2
Year 3
Year 4
Year 5
Totals
Answer & Explanation
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