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I. STRAIGHT LINE DEPRECIATION The next two problems provide a closer look at Straight Line versus Double Declining Balance Depreciation. In these problems, assume all
I. STRAIGHT LINE DEPRECIATION The next two problems provide a closer look at Straight Line versus Double Declining Balance Depreciation. In these problems, assume all machinery is bought at the first of the year. Machine Cost Salvage Value Useful Life 1) Tractor A 80,000 30,000 5 2) Combine 210,000 70,000 Assume you own the machinery above. Calculate annual depreciation using the straight-line method. Combine Year 1 Year 2 Year 3 Tractor A 00 12000 Ordo Year 4 Year 5 Year 6 Year 7 II. DOUBLE DECLINING BALANCE Now Calculate annual depreciation on Tractor A and Combine using double declining balance. Be careful not to exceed the salvage value. Tractor A Combine Year 1 Year 2 Year 3 Year 4 Year 4 Year 5 Year 6 Year 7
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