You received an urgent request to review someone's depreciation analysis. The analyst provided

annual depreciation amount $(D_N=1to)$ for an asset using different methods. The analyst did not

show which methods were used but only provided the annual depreciation amounts $($not book

values$).$ The half$-$year rule does not apply in the following analysis. The data for the five

depreciation methods is summarized as follows:

$[$a$]$ Determine which of these columns is produced using the Straight Line method. $(2$ Marks$)$

$[$b$]$ If Column B was obtained from Declining Balance method? Can you estimate the declining

balance factor $()$ knowing that $D_{N+1}=B_N,$ where $D_{N+1}$ is the depreciation amount next year and

$B_N$ is book value at the end of this year. $(4$ Marks$)$

$[$c$]$ Now which column is most likely to be Declining Balance with Switching? Also, which

column$($s$)$ is$($are$)$ most likely to be obtained using the Unit of Production method? $(4$ Marks$)$

$[$d$]$ Now assume that the asset price as well as the salvage value are the same for all columns $($same

asset but different depreciation methods$),$ calculate the asset price $($book value at the beginning of

first year$).(5$ Marks$)$