A million-dollar oil drilling rig has a 6-year depreciable life and a $75,000 salvage value at the

Question:

A million-dollar oil drilling rig has a 6-year depreciable life and a $75,000 at the end of that time. Determine which one of the following methods provides the preferred depreciation schedule: DDB or SOYD. Show the depreciation schedule for the preferred method.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...