A local bus company has decided to purchase a new bus for RO 65,000 with a trade in of their old bus The old bus has a BV of RO 10,000 at the time of the trade in The estimated useful life of the new bus is 10 years Its estimated SV at that time is expected to be RO 8,000 Compute 1 Depreciation amount in the 3 year of life, 2 Book value at the end of the 5 year of life, 3 Cumulative depreciation amount up to the 8 year, 4 Book value at the beginning of the 4 year By each of these methods a) The SL method (10 points) b) 250 DB with Switchover to SL (10 points)By each of these methods a) The SI method (10 points) b) 250 DB with Switchover to SL (10 points)

Question

A local bus company has decided to purchase a new bus for RO 65,000 with a trade in of their old bus  The old bus has a BV of RO 10,000 at the time of the trade in  The estimated useful life of the new bus is 10 years  Its estimated SV at that time is expected to be RO 8,000  Compute  1  Depreciation amount in the 3  year of life, 2  Book value at the end of the 5  year of life, 3  Cumulative depreciation amount up to the 8  year, 4  Book value at the beginning of the 4  year  By each of these methods  a) The SL method  (10 points) b) 250  DB with Switchover to SL  (10 points)By each of these methods  a) The SI  method  (10 points) b) 250  DB with Switchover to SL  (10 points)

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A local bus company has decided to purchase a new bus for RO 65,000 with a trade-in of their old bus. The old bus has

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