A- For a $10,000 communications system with a useful life of 5 year and salvage value of $778, construct the annual depreciation allowance table (including depreciation amounts and book values), using double-declining depreciation method.

B- Tom has bought a yellow automobile for $10K. Using MACRS GDS and DDB depreciation, construct the annual depreciation allowance table.

C- Dr. Murphy wants to calculate the scrap value of a grill 20 years after purchase. According to him, using the declining-balance method, better represents depreciation. However he does not know what figure to use for depreciation rate. She goes on craigslist, and observes that a grill that was purchased for $245,000 three years ago, has a current salvage value of $180,000. What is a good estimate of the value of her grill after 20 years, if she buys one for $260,000 today?

D- Some construction company has bought a product for $200,000 with a life of three years, and a salvage value of $10,000. Tabulate depreciation and book value using MACRS, Double Declining Balance and straight-line methods. Which method gives the company the largest depreciation after two years?