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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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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 3rd year of life, 2. Book value at the end of the 5th year of life, 3. Cumulative depreciation amount up to the 8th year, 4. Book value at the beginning of the 4th year. By each of these methods: a) The SL method. (10 points) b) 250% DB with Switchover to SL. (10 points) I By each of these methods a) The SI. method. b) 250% DB with Switchover to SL (10 points) (10 points)

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