Tory Enterprises pays $246,400 for equipment that will last five years and have a $44,400 salvage value. By using the equipment in its operations for five years, the company expects to earn $89,300 annually, after deducting all expenses except depreciation.
Calculate annual depreciation expense using double declining method. prepare a table showing income before depreciation expense and net pretax income for each year and total of 5 years double declining balance depreciation is used.