Assume that a piece of equipment is purchased for $100,000. It costs $5,000 to install the equipment. We expect it to last for 5 years, and believe that we will be able to sell it for $25,000 at the end of that five year period of time. 

A. What is the depreciable base for the equipment? 

B. Using straight-line depreciation, what is the annual depreciation? 

C. After 3 years, how much accumulated depreciation will there be? 

D. After 2 years, what is the net or book value of the equipment? 

E. If we sell it after 3 years for $50,000 will we have to record a gain or a loss? How much? 

F. If we were using double declining balance instead of straight line depreciation, how much depreciation would there be in each year of the asset's five year life?