1A) Company A purchased a piece of equipment for $45,000 on February 1, Year 1. The company has a fiscal year end of 12/31. The asset will be depreciated using the straight-line method over its five-year useful life. Assuming the asset's residual value is $5,000, the company should recognize depreciation expense in Year 1, 2 and 3. At the end of Year 3, what would be the asset's Net Book Value?

Year 1:

Year 2:

Year 3:

1B) Company B purchases a vehicle on January 1st for $100,000.The vehicle has a useful life of 3 years and a salvage value of $10,000.IF the company selects to use the double declining method, calculate the double declining rate and the depreciation expense for each year. At the end of Year 3, what would be the asset's Net Book Value?

Double Declining Rate:

Year 1:

Year 2:

Year 3:

1C) Company C purchased school bus for $200,000. The bus has a useful life of 8 years, or 800,000 miles. The bus is estimated to have $0 residual value. The first year, the bus is driven for 400,000 miles and the second year, the bus is driven for 450,000 miles. Using the units of production (output) method,calculate the depreciation expense rate AND calculate the depreciation expense the company should recognize in Year 1 and Year 2. At the end of Year 3, what would be the asset's Net Book Value?

Rate:

Year 1:

Year 2: