Question
Consider the following data on an asset: &n
Consider the following data on an asset:
|
Cost of the asset, I |
$233,000 |
|
Useful life, N |
5 years |
|
Salvage value, S |
$62,000 |
Compute the annual depreciation allowances and the resulting book values.
(a) Use the straight-line depreciation method. Fill in the table below. (Round to the nearest dollar.)
|
n |
Dn |
Bn |
|
|
1 |
$__________ |
$___________ |
|
|
2 |
$__________ |
$___________ |
|
|
3 |
$__________ |
$___________ |
|
|
4 |
$__________ |
$___________ |
|
|
5 |
$__________ |
$___________ |
(b) Use the double-declining-balance method. Fill in the table below. (Round to the nearest dollar.)
|
n |
Dn |
Bn |
||
|
1 |
$_________ |
$__________ |
||
|
2 |
$_________ |
$__________ |
||
|
3 |
$_________ |
$__________ |
||
|
4 |
$_________ |
$__________ |
||
|
5 |
$_________ |
$__________ |
Homework Answers
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