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Bayliner Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.
Year
Straight-Line
Sum-of-the- Years'-Digits
Double-Declining-Balance
1
$15,000
$25,000
$34,000
2
15,000
20,000
20,400
3
12,240
4
10,000
7,344
5
5,000
1,016
Total
$75,000
Required:
Answer the following questions:
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