Response to the following problem:
A dairy storage tank acquired at the beginning of the fiscal year at a cost of $98,500 has an estimated residual value of $7,500 and an estimated useful life of 10 years.
Determine the following:
(a) the amount of annual depreciation by the straight-line method and
(b) the amount of depreciation for the first and second years computed by the declining-balance method (at twice the straight-line rate).