Messer Company purchased equipment for $24,000. The company is considering whether to determine annual depreciation...

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Accounting

Messer Company purchased equipment for $24,000. The company is considering whether to determine annual depreciation using the
straight-line method or the declining-balance method at 150 percent of the straight-line rate. Messer expects to use the equipment for
10 years, at the end of which it will have an estimated salvage value of $4,000.
Prepare a comparison of these two alternatives for the first two years Messer will own the equipment.
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