Smali Aircraft Engine depr rate depr expense accum depr Remaining book value Capitalised CT Straight Line: (Cap Cost-SV) depreciable Year cost basis 1 2 3 4 5 Double Declining Balance: Capitalized cost basis depr rate depr expense accum depr Remaining book value Capitolina dost - Year 1 2 3 4 5 6 Units of Production: Depr Cost Per Unit Depr Expense Accum Depr Book Value Capitalized cost Year 1 2 3 Units of activity 750 1250 1800 Unit costs= (Capitalized Cost - Salvage Value) / number of units of production during life) Example: Small aircraft engine $37,000 Install $15,000 test $3,000 Cap costs $55,000 5 years useful life 10,000 hours life Placed in service: 7/1/06 Salvage $5,000 Value