Year 2021 2022 2023 2024 2025 Opening Value $14,000 $11,600 $9,200 $6,800 $4,400 Depreciation Expense $2,400 $2,400 $2,400 $2,400 $2,400 Net Book Value $11,600 $9,200 $6,800 $4,400 $2,000 Create an updated chart to reflect equipment purchased on July 1. Year Opening Value Depreciation Expense Net Book Value 2021 $14,000 2022 2023 2024 2025 2026 Double Declining Balance Method-Commercial Lawn Mower: Acquired January 1. Purchased for $14,000; salvage value is $2,000. Useful life is 5 years. Is the salvage value used to compute book value (circle the answer)? YES NO How is the double declining rate computed? Complete the following DDB table: Book Value: Year Start of Year Accumulated Depreciation Book Value: End of Year Year 1 Year 2 Year 3 Year 4 Annual DDB Percent Depreciation Expense What amount must the balance in the accumulated depreciation account equal in year 4? In which year does the Straight Line Depreciation expense exceed the Double- Declining Balance Depreciation? How does the depreciation requirement alter calculations in year 4? Units of Activity-Commercial Lawn Mower: Acquired January 1. Purchased for $14,000; salvage value is $2,000. Useful life is 5 years. Total units of activity = 6,250 hours. PART D: What is the depreciable cost amount? Show your computation to calculate the depreciation rate per hour. Will the depreciation rate change from year to year? YES NO Complete the following Units of Activity Depreciation table for the first five years they use the equipment: Accumu Ho Deprecia Annual Depreciati Y lated Book urs tion on Depreci Value Rate a Expense ation Per Balance Hour r Us ed