So we will begin with basic financial accounting (not tax MACRS depreciation). Prepare a table showing depreciation expense and book value for an asset depreciated using straight line depreciation. However, express all numbers as percentages of purchase price, and assume no residual value.

For example, in year 1, depreciation expense is 20 percent and the ending book value is 80 percent. Complete for years 2 through 5.

Straight line over 5 years (not tax) End of year basis year 1 20.0% 80% year 2 year 3 year 4 year 5 Total