Question
1) Using the SL method: What is the depreciation amount in the third year? What is the BV at the end of the fourth year
1) Using the SL method:
What is the depreciation amount in the third year?
What is the BV at the end of the fourth year of life?
2) Using the 200% DB method:
What is the depreciation amount in the third year?
What is the BV at the end of the fourth year of life?
3) Using the GDS:
What is the depreciation amount in the third year?
What is the BV at the end of the fourth year of life?
4) Using the ADS:
What is the depreciation amount in the third year?
What is the BV at the end of the fourth year of life?
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is S50,000, and it has an estimated MV of $12,000 at the end of an estimated useful life of 16 years. Compute the depreciation amount in the third year and the BV at the end of the fourth year of life by each of these methods
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Auditing
Authors: Alan Millichamp, John Taylor
10th Edition
1408044080, 978-1408044087
