L 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 1) Tractor A 2) Tractor B 3) Combine Cost 60,000 75,000 98,000 20,000 0 7 Assume you own the machinery above. Calculate annual depreciation using the straight-line method Tractor A Tractor B Combine Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 II. DOUBLE DECLINING BALANCE Now Calculate annual depreciation on this machinery using double declining balance. Be careful not to exceed the salvage value. If the salvage value is zero, switch to straight-line in the year when straight-ine yields higher depreciation. (Use the remaining value as the starting point when you change.) Tractor A Tractor B Combine Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7