Lansbury Company purchases equipment on January 1, Year 1, at a cost of £518,000. The asset is expected to have a service life of 12 years and a residual value of £50,000.

Instructions

(a) Compute the amount of depreciation for each of years 1 through 3 using the straight-line depreciation method.

(b) Compute the amount of depreciation for each of years 1 through 3 using the sum-of-the-years’-digits method.

(c) Compute the amount of depreciation for each of years 1 through 3 using the double-decliningbalance method. (In performing your calculations, round constant percentage to the nearest onehundredth of a point and round answers to the nearest pound.)