Draw up separate depreciation schedules for the machinery

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Sheila Inc. purchased machinery on January 1, 2022, at a cost of $284,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $33,400. The company is considering different depreciation methods that could be used for financial reporting purposes.

Question a) Draw up separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.

Question b) Which method would result in the higher reported 2022 income? In the highest total reported income over the 4-year period?

Question c) Which method would result in the lower reported 2022 income? In the lowest total reported income over the 4-year period?

Reference no: EM132494571

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