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PLz remember to show your steps Options for Depreciation method: CCA, DB, SOYD, SL, DDB Depreciation rate : 20%, 30%, 33%, 40%, 10%, N/A Your
PLz remember to show your steps
Options for
Depreciation method:
CCA, DB, SOYD, SL, DDB
Depreciation rate :
20%, 30%, 33%, 40%, 10%, N/A
Your colleague has calculated the depreciation schedule for a new computer using four different methods, and has given them to you for your consideration (in the table below). However, he forgot to tell you which depreciation methods he used to calculate those schedules, and merely labelled them "A", "B", "C", and "D". The values in the table below are the annual depreciation charges for the computer using the various methods he chose. Identify the depreciation methods and depreciation rate (where applicable) used to arrive at the schedules in columns A, B, C, D and E. Note that the estimated salvage value of the equipment at the end of its 6-year useful life is $20,000. And remember, the values in the table are the depreciation charges themselves, they are not the remaining book value. (Note: CCA denotes capital cost allowance; DB denotes declining balance; SOYD denotes sum-of-the- years digits; SL denotes straight line; DDB denotes double declining balance.) Year A B Ic D JE 1 $28,571 $24,000 $18,000 $16,667 $40,000 2 $23,810 $19,200 $30,600 $16,667 $26,667 3 $19,048 $15,360 $21,420 $16,667 $17,778 $14,286 $12,288 $14,994 $16,667 $11,852 15 $9,524 $9,830 $10,496 $16,667 $3,704 $4,762 $7,864 $7,347 $16,667 Depreciation method 4 Depreciation rateStep by Step Solution
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