Question 8: A small truck is purchased for $22,000. It is expected to be of use to the company for 6 years, after which it will be sold for $4,000. Determine the depreciation deduction and the resulting unrecovered investment during each year of the assets life.

Use declining balance depreciation using a rate that ensures the book value equals the salvage value:

EOY	Depreciation Deduction	Unrecovered Investment
0
1	$	$
2	$	$
3	$	$
4	$	$
5	$	$
6	$	$

Use double declining balance depreciation:

EOY	Depreciation Deduction	Unrecovered Investment
0		$
1	$	$
2	$	$
3	$	$
4	$	$
5	$	$
6	$	$

Use double declining balance switching to straight line depreciation:

EOY	Depreciation Deduction	Unrecovered Investment
0		$
1	$	$
2	$	$
3	$	$
4	$	$
5	$	$
6	$	$