The GHI Company has the following Fixed Asset. The company prepares statements on a calendar year basis. March 1: Purchased equipment for $7,000 on October 1 of the calendar year. The salvage value is...

Extracted text: The GHI Company has the following Fixed Asset. The company prepares statements on a calendar year basis. March 1: Purchased equipment for $7,000 on October 1 of the calendar year. The salvage value is $1,000 and it has a life of 6 years. Determine the depreciation for the current year (which is a partial year) and the following year (which is a full 12 month year) under the following methods: 1. Straight-Line Method 2. Double-Declining Balance Method