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On January 1 of Year 1, Sunny University purchased a piece of equipment for $600,000....

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Accounting

On January 1 of Year 1, Sunny University purchased a piece of equipment for $600,000. The estimated life of the equipment is 5 years. Sunny University estimates that the equipment can be sold for $100,000 at the end of its life. Sunny University uses double-declining balance depreciation. For Year 2 (the SECOND year), Sunny Universitys net income was $200,000. What would Sunny Universitys net income have been in Year 2 (the SECOND year) assuming that Sunny University had initially (on January 1, Year 1) decided NOT to use double-declining balance depreciation but had instead used straight-line depreciation? Note: Ignore income taxes. Write the dollar amount of your answer (do not write the dollar sign).

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