A high-precision programmable router for shaping furniture components is purchased by Henredon for $155,000. It is expected to last 12 years and have a salvage value of $5,000. Calculate the depreciation deduction and book value for each year.

Use straight-line depreciation:

EOY	Depreciation Deduction	Book Value
0		$
1	$	$
2	$	$
3	$	$
4	$	$
5	$	$
6	$	$
7	$	$
8	$	$
9	$	$
10	$	$
11	$	$
12	$	$

Use declining balance depreciation using a rate that ensures the book value equals the salvage value.

EOY	Depreciation Deduction	Book Value
0
1	$	$
2	$	$
3	$	$
4	$	$
5	$	$
6	$	$
7	$	$
8	$	$
9	$	$
10	$	$
11	$	$
12	$	$

Use double declining balance depreciation:

EOY	Depreciation Deduction	Book Value
0		$
1	$	$
2	$	$
3	$	$
4	$	$
5	$	$
6	$	$
7	$	$
8	$	$
9	$	$
10	$	$
11	$	$
12	$	$

Use double declining balance switching to straight line depreciation:

EOY	Depreciation Deduction	Book Value
0		$
1	$	$
2	$	$
3	$	$
4	$	$
5	$	$
6	$	$
7	$	$
8	$	$
9	$	$
10	$	$
11	$	$
12	$	$