PART I - INSTRUCTIONS: DETERMINE DEPRECIATION UNDER THE

STRAIGHT LINE METHOD. EQUIPMENT WAS PURCHASED AT A COST OF

$150, 000. THIS ONE HAS AN ESTIMATED USEFUL LIFE OF 5 YEARS AND A

SALVAGE VALUE ESTIMATED $25,000

PART II - INSTRUCTIONS: DETERMINE DEPRECIATION UNDER THE

"DECLINING BALANCE" METHOD. EQUIPMENT WAS PURCHASED AT A COST

$275,000. THIS ONE HAS AN ESTIMATED USEFUL LIFE OF 5 YEARS.

PART III - INSTRUCTIONS: DETERMINE DEPRECIATION UNDER THE

UNITS OF ACTIVITY METHOD". EQUIPMENT WAS PURCHASED AT A COST OF

$200, 000. IT HAS AN ESTIMATED USEFUL LIFE OF 5 YEARS. SALVAGE VALUE ES

$50, 000. THE UNITS PRODUCED WERE.

YEARS UNITS

1 20,000

2 30,000

3 35,000

4 10,000

5 5,000