Question: Stanley Lawn Service purchased new equipment on January 1 2012

Stanley Lawn Service purchased new equipment on January 1, 2012, at a cost of $45,000. The company estimates the equipment has a useful life of four years with a salvage value of $6,000.

Requirements
1. Prepare two different depreciation schedules for the equipment—one using the straight-line method and the other using the double-declining balance method. (Round to the nearest dollar.)
2. Determine which method would result in the greater net income for the year 2014.


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  • CreatedSeptember 01, 2014
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