Answer:
Company A Â 42,750 (highest)
Company B 35,000
Company C 21,450
Explanation:
straigh-line dpereication (Company A)
(acquisition - salvage) / useful life
(70,000 - 5,000) / 4 = 16,250
double declining (comopany B)
2/ useful life x carrying value
2/4 x 70,000 = 35,000
units of production:
(acquisition - salvage) / units of production x usage for the period
(70,000 - 5,000) Â / 200,000 x 66,000 = 21,450
From the revenues we subtract the depreciation expense and get net income