Question Details

Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a salvage value of $10,000.

Complete the following tasks for this assignment:

Prepare two different 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).
Determine which method would result in the greatest net income for the year ending December 31, 2005.
How would taxes affect management- choice between these two methods for the financial statements?
Grading Criteria

% of grade for this assignment

Prepare two different 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).

60%

Determine which method would result in the greatest net income for the year ending December 31, 2005.

20%

How would taxes affect management- choice between these two methods for the financial statements?

20%

Please submit your assignment.

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Unit Materials

Unit 3 Course Materials