Chapter 9 Problem 9.12 (25 points). The double-declining-balance method (DDBM) is to be used for an asset with a cost of $88,000, an estimated salvage value of $13,000, and an estimated useful life of six years. (b) If switching to the straight-line method is allowed, when is the optimal time to switch and why (10 pts). HINT Follow example in class slides, comparing DDBM versus Straight Line depreciation in a year. You switch to SIL if DDBM allowed depreciation is lower than the SL method depreciation and continue from there to depreciate the asset until end of year 6