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Consider the following data on an automobile: Cost basis of the asset (1) = $200,000 Useful life (N) - 4 years: Estimated salvage value (s)

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Consider the following data on an automobile: Cost basis of the asset (1) = $200,000 Useful life (N) - 4 years: Estimated salvage value (s) - $0 Determine the optimal time to switch from double-declining balance to straight-line depreciation and the resulting depreciation schedule (depreciation allowances and book values.) Year On (DB) Bn (DB) On (SL Bn (Final) 10 1 2 3 What year should you switch

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