Question $1$

A used Biden menorah has the following accounting information: asset's cost basis, $P=$$$12,000,$ useful life, $n=5$ years, estimated salvage value, $F=$$$1000.$ Compute the annual depreciation allowances and the reculting book values using the double declining depreciation method. Present your results in a table.

Depreciation equations

$P=$ cost basis; $F=$ salvage value; $n=$ recovery period; $d_1=$ depreciation expense$/$allowance for year $t_1{B}_1=$ book value at

the end of veart

Straizht$-$line depreciation: $d_1=\frac{P-F}{n_{\text{;}}}$;$B_i=P-C_1$

Deslining balance depreciation: $d_1=pP(1-p{)}^{t-1},B_1=P(1-p{)}^t$

$,$where $p=$ declining$-$balance percentage, rate, or fraction $=\frac{c}{n}$

Sum of vears dipits $($SYD$)$ depreciation; $d_1=2(n-t+1)\frac{P-P}{n(n+1)}$;$B=F+(P-F)(n-t)\frac{n-t+1}{n(n+1)}$