A storage tank acquired at the beginning of the fiscal year at a cost of $72,000 has an estimated residual value of $4,400 and an estimated useful life of 4 years.

a. Determine the amount of annual depreciation by the straight-line method.
$

b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.

Depreciation

Year 1$

Year 2$

Answer rating: 100% (QA)

a To determine the amount of annual depreciation by the straightline method we first need to calcula... View the full answer