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Dorvity's Design 6 a relat'vely new landucaping business- (ast vear (D0cz) hw. been very grelitabie, so Borethy is planing to pachare a new tractor, TTplements,

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Dorvity's Design 6 a relat'vely new landucaping business- (ast vear (D0cz) hw. been very grelitabie, so Borethy is planing to pachare a new tractor, TTplements, truler and truck for her bnsiness. The detals of her purchese dare belon. Dorathy has asted zou for vour ldean about depreciation. she would ske to know what her ogtions are for depreciating thele item. Dorotly alio meritioned that ahtough last yoar was very prulitabie, she in worried that the economy is hendine into a reciemion and thitics that the neat few years she may have trouble turnirg a prefla. Given this scenario she would lien to know 1. What depreciatioa metavady are ine lable for depreciating these itemu? 2. What would the deprecietian amounts be for cach inem for each year unine each option for the dieat 5 years? 3. What is the book value of each iteai at the end of the 5 vears using each option? a. What ore the atwartaces and disadvackates of each aptisn? 5. What is rour recomatiendotion and why? "Pordthrest mates thet the truck wid be driven 100,000 miles over the 5-vear Ife. For vear 1 the truck wi be drinen 7,090 mile. Years 24 the truck will be dnven 20,000 miles and vear 5 the trick wili be driven 43,000 enild

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