A set of office equipment costs $80,000 and has a useful life of 8 years

Following problem, 

(a) draw the cash flow diagram

(b) present clean and clear manual solutions to the problem

(c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box.

1. A set of office equipment costs $80,000 and has a useful life of 8 years. Its estimated market value at the end of the 8^th year is $2,000. Determine the depreciation amount on the 5^th year and the book value at the end of the 3rd year using:

• Straight Line Method
• Double Declining Balance Method
• Sum-of-Years Digits Method
• Declining Balance Method with Switchover to SL
• MACRS GDS