Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $104,400 has an estimated residual value of $6,000 and an estimated useful life of 10 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. Depreciation Year 1 $ Year 2 $