Small Aircraft Engine Straight Line (Cap Cost - SV) depreciable depr dep accum Remaining Year Capitalized Core cost basis rate expense depr book value 3 5 Double Declining Balance Capitalized dep dept accum Remaining Year cost basis rate expense depr book value Units of Production: Depr Cost Depr Accum Book Year Units of activity Per Unit Expense Depr Value 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