A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost basis of $4,600 and a 10 year depreciable life. The estimated SV of the saw is $600 at the end of 10-year period. Determine the annual depreciation amounts using the straight-line method. Tabulate the annual depreciation amounts and the book value of the saw at the end of each year.

Rework above problem with the DB method when (a) R = 2/N (200% DB method) and (b) R = 1.5/N (150% DB Method), and (c) R 2/N then switch to SL. Tabulate the annual depreciation amount and book value for each year.

R 1.5/N dy R= 2N R- 2/N, switch to SL di di BVn BVn 0 4 10