Sara purchased a car for $70,000 and it is estimated to have 5 years for it's useful life. At the end of its life, it is estimated to remain $20,000 left in its value.

Question:

1. Using Excel to construct Depreciation Schedule for this NCA over 3-5-year period under both methods: Straight-line & Reducing balance (at double S-L rate)

2. Draw graphs on NCAs depreciation & Book Value to make a comparison between two methods.

3. Explain the key findings for differences between Straight-line & Reducing balance in accounting for the NCAs depreciation and Book Value