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You received an urgent request to review someone's depreciation analysis. The analyst provided annual depreciation amount for an asset using different methods. The analyst did
You received an urgent request to review someone's depreciation analysis. The analyst provided annual depreciation amount for an asset using different methods. The analyst did not show which methods were used but only provided the annual depreciation amounts. The data for the five depreciation methods is summarized as follows: Year B D E 11 $4,500 $2,000 $3,333 $2,500 $6,000 2 $3,150 $2,000 $2,667 $1,500 $3,600 3 $2,212 $2,000 $2,000 $3,000 $1800 4 $1,548 $2,000 $1,333 $1,000 $1800 5 $1,077 $2,000 $667 $2,000 $1800 [a] Determine which of these columns is: Straight Line, Declining Balance, Declining Balance with Switching, or Unit of Production Method. Clearly explain your justification for your choice. If you think a column was obtained using more than one method, state that. [b] We now need to calculate the cost basis and the salvage value. You may use one or more of the previous columns to produce these estimates. Please note that the same asset was used for all columns, but different methods of depreciation were applied. You received an urgent request to review someone's depreciation analysis. The analyst provided annual depreciation amount for an asset using different methods. The analyst did not show which methods were used but only provided the annual depreciation amounts. The data for the five depreciation methods is summarized as follows: Year B D E 11 $4,500 $2,000 $3,333 $2,500 $6,000 2 $3,150 $2,000 $2,667 $1,500 $3,600 3 $2,212 $2,000 $2,000 $3,000 $1800 4 $1,548 $2,000 $1,333 $1,000 $1800 5 $1,077 $2,000 $667 $2,000 $1800 [a] Determine which of these columns is: Straight Line, Declining Balance, Declining Balance with Switching, or Unit of Production Method. Clearly explain your justification for your choice. If you think a column was obtained using more than one method, state that. [b] We now need to calculate the cost basis and the salvage value. You may use one or more of the previous columns to produce these estimates. Please note that the same asset was used for all columns, but different methods of depreciation were applied
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