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Exercise One: Prats Engineering has recently purchased an industrial level, computerized milling machine. At the time of purchase, the asset has a Book Value of

Exercise One: Prats Engineering has recently purchased an industrial level, computerized milling machine. At the time of purchase, the asset has a Book Value of $85,000 (USD), and a useful life of 15 years. The Straight-Line Rate is 6.67%, and the corresponding Salvage Value is $9,000 (USD). Given your knowledge of depreciation, and using the Depreciation Module as your guide, (a) as shown in class, compute the depreciation schedule for this asset under the Declining Balance Method. (Hint: Remember to multiply the Straight-Line Method by a factor of 2 to obtain the Declining Balance Rate of Depreciation).

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