New lithographic equipment, acquired at a cost of $800,000 on march 1 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. the manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. on the basis of the data presented to the manager, the double-declining-balance method was selected.

in the first week of the fifth year, the equipment was sold for $135,000.

required:

1. determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:

a. straight-line method b. double-declining-balance method

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.