A company bought an asset at the beginning of 2001 for $100,000. The company now has an offer to sell the asset for $60,000 at the end of 2002. For each of the depreciation methods shown below determine the capital loss or recaptured depreciation that would be realized for 2002. Depreciation Method Depreciable Life Salvage Value Recaptured Depreciation1 Capital Loss SL 10 years $1000 SOYD 5 years $25,000 DDB 4 years $0

Problem 2: A company bought an asset at the beginning of 2001 for $100,000. The company now has an offer to sell the asset for $60,000 at the end of 2002. For each of the depreciation methods shown below determine the capital loss or recaptured depreciation that would be realized for 2002. Depreciation Depreciable Salvage Recaptured Capital Loss Method Value Depreciation $1000 5 years $25,000 4 years Life 10 years SL SOYD DDB $0