1. Use Microsoft Excel to solve the question. The initial cost of an asset is BD100000. It has useful life of 9 years. The estimated salvage value of the asset at the end of useful life is zero. Calculate the annual depreciation and book value using double-declining balance method and find out the year in which the switching is done from double-declining balance method to straight-line method. Theory related to switching Switching between different depreciation methods:- Switching from one depreciation method to another is done to accelerate the depreciation of book value of the asset and thus to have tax benefits. Switching is generally done when depreciation amount for a given year by the currently used method is less than that by the new method. The most commonly used switch is from double-declining balance (DDB) method to straight-line (SL) method. In double-declining balance method, the book value never reaches zero. In NR UNDERCA PERDAS Dr.BT AMA INTERNATIONAL UNIVERSITY-BAHRAIN Salmabad, Kingdom of Bahrain COLLEGE OF ENGINEERING TH 2 Tri 34 TL SY 2019-2020 FINAL PROJECT CASE STUDY ENGG522- ENGINEERING ECONOMY addition the calculated book value at the end of useful life does not match with the salvage value. Switching from double-declining balance method to straight-line method ensures that the book value does not full below the estimated salvage value of the asset. 2. Identify why the switching is desired in the above case study. 3. How an amount is generated from Sinking Fund Method