A medical practice purchases computer equipment that cost $15,000 to be used for medical billing. In addition, the practice purchases billing software that cost $5,000. Both the computer equipment and the software are expected to have 3-year useful lives and no salvage value.

Please calculate the Three years of depreciation using straight-line, double declining balance, and sum-of-the-years digits.

Asset Cost:

Salvage Value:

Asset Life:

Straight-line Depreciation Each Year #DIV/0!

Asset Cost: $0 Salvage Value: $0 Asset Life: 0 Depreciation Year

Double Declining Balance Depreciation #NUM!

Asset Cost: $0 Salvage Value: $0 Asset Life: 0 Depreciation Year

Sum of the Years Digits Depreciation #NUM!

	Straight Line			Double Declining Balance **			Sum-of-the years Digits
	Annual	Accumulated		Annual	Accumulated		Annual	Accumulated
Year	Depreciation	Depreciation		Depreciation	Depreciation		Depreciation	Depreciation
1		$0			$0			$0
2		$0			$0			$0
3		$0			$0	**		$0

** Note: By the end of the third year, the DDB method must take enough depreciation in total to have accumulated depreciation equal to the Depreciable Base. Therefore the depreciation in the last year is computed by subtracting the accumulated depreciation at the end of the second year from the depreciable base of $20,000