Question
table {mso-displayed-decimal-separator:.; mso-displayed-thousand-separator:,;} tr {mso-height-source:auto;} col {mso-width-source:auto;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:black; font-size:11.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Calibri, sans-serif; mso-font-charset:0; text-align:general; vertical-align:bottom; border:none; white-space:nowrap; mso-rotate:0;}
table {mso-displayed-decimal-separator:"\."; mso-displayed-thousand-separator:"\,";} tr {mso-height-source:auto;} col {mso-width-source:auto;} td {padding-top:1px; padding-right:1px; padding-left:1px; mso-ignore:padding; color:black; font-size:11.0pt; font-weight:400; font-style:normal; text-decoration:none; font-family:Calibri, sans-serif; mso-font-charset:0; text-align:general; vertical-align:bottom; border:none; white-space:nowrap; mso-rotate:0;} .xl16 {text-align:center;} .xl17 {text-align:center; border-top:none; border-right:none; border-bottom:.5pt solid black; border-left:none;} .xl19 {border-top:.5pt solid black; border-right:none; border-bottom:2.0pt double black; border-left:none;} .xl20 {font-weight:700;} .xl21 {background:#FFC000; mso-pattern:black none;}
Year | Straight Line | Sume of the Years Digigts | Double Declining Balance | |
1 | $9,000 | $15,000 | $20,000 | |
2 | $9,000 | $12,000 | $12,000 | |
3 | $9,000 | $9,000 | $7,200 | |
4 | $9,000 | $6,000 | $4,320 | |
5 | $9,000 | $3,000 | $1,480 | |
Total | $45,000 | $45,000 | $45,000 | |
What is the cost of the asset being depreciated? | ||||
What amount if any was used in the depreciation calculations for the salvage value for this asset | ||||
= | ||||
Which method will produce the highest charge to income in year 1 | ||||
Which method will produce the highest charge to income in year 4 | ||||
Which method will produce the highest book value for the asset at the end of year 3 | ||||
If the asset is sold at the end of year 3, which method would yeild the highest gain (or lowest loss) on disposal of the asset |
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