Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 33

Equipment costing $86,000 was purchased by Spence, Inc., at the beginning of the current year.he company will depreciate the equipment by the declining-balance method, but it has not determined whether the rate will be at 150 percent or 200 percent of the straight-line rate.he estimated useful life of the equipment is eight years.repare a comparison of the two alternative rates for management for the first two years Spence owns the equipment.