The La Salle Bus Company has decided to purchase a new bus for $85000 with a trade-in of their old bus. The old bus has a BV of $10000 at the end of the trade in. The new bus will be kept for 9 years before being sold. Its estimated SV at that time is expected to be $5000. Answer to the questions 1-4 using information that is provided

1) Using the SL method, what is the Book value of the bus at the end of year 6?

2) Using the DB method, what is the Book value at the end of the year 6? (Assume 200% depreciation rate for the bus)

3) Assuming DB with switchover to SL method, at each year does the switch occur? (4,5,6,7,8,9, Switch Never happen)?

4) How much the depreciation would be after the switch to SL method happen?