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Chapter 11 In Class Exercises: Depreciation Methods Scenario: Costa 469,000 Useful Life (Years) - 5 Useful Life (Hours) = 140,000 Salvage Value - 39,000 1)

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Chapter 11 In Class Exercises: Depreciation Methods Scenario: Costa 469,000 Useful Life (Years) - 5 Useful Life (Hours) = 140,000 Salvage Value - 39,000 1) Method 1: Straight Line Depreciable Cost Depreciation Rate Annual Depr Exp Accum. Depr. Book Value Year 2018 2019 2020 2021 2022 = Salvage Value = Depr. Cost 2) Method 2: Units of Activity Depreciation Rate Annual Depr Exp Accum. Depr. Book Value Year 1 2018 2019 2020 2021 2022 Units of Activity 30,000 20,000 25,000 40,000 25,000 140,000 = Salvage Value = Depr. Cost 3) Method 3: Double-Declining Balance Book Value Beg. Of Year Depreciation Annual Depr Rate Exp Accum. Depr. Book Value Year 2018 2019 2020 2021 2022 = Salvage Value PLUG = Depr. Cost 14) Method 4: Sum of Years Digits Accum. Depreciable Cost Depreciation Rate Annual Depr Exp Depr. Book Value Year 2018 2019 2020 2021 2022 = Salvage Value = Depr. Cost

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