DEPRECIATION METHODS Assume your company acquires an equipment that costs $50,000 will be depreciated over 10 years to a final salvage value of $5,000. Determine the depreciation and book value for each year using the following methods: (1). Straight-line (2). Sum-of-years' digits (3). Double-decling-balance (result may reflect rounding erros) EXCEL functions for depreciation: =SLN(cost, salvage,life) =SYD(cost,salvage,life, period) =DDB(cost, salvage, life, period, [factor]) SLN: 1/10 of (Cost-Salvage) each Year | SYD: (10/55) of (Cost-Salvage) Year 1, ... (1/55) of (cost-salvage in Yr. 10) DDB: 2*(100/Useful Life) Percent of Remaining Value each year; 20% of remaining value each year When copying the formulas, be sure to use absolute values and relative values appropriately to avoid erros. Cost Salvage Value $ 50,000.00 $ 5,000.00 Years/life 10 Sum of the Years' Digit 55 Sum-of-Years'- Double-declining- Period Straight-line SLN Book Value Digits SYD Book Value balance DDB Book Value 1 2 3 4 5 6 7 8 9 10 Total Depreciation