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A car has a first cost of 200.000 and a salvage value of 80.000 after 6 years. a) What is the annual depreciation charge in
A car has a first cost of 200.000 and a salvage value of 80.000 after 6 years. a) What is the annual depreciation charge in year 5 (Ds=?) and book value after 3 years (BV3=?) using straight line depreciation method. b) What is the depreciation in the second year (D2=?) using double declining balance depreciation method. D+ = dB(1 - d)-1 = dBVt-1 c) What is the depreciation in the 5th (Ds=?) year if you switch between depreciation methods (start with double declining balance and switch to straight line when necessary)
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