Documente Academic
Documente Profesional
Documente Cultură
SOLUTION
2
Annual rate of depreciation = — = 40%
5
A B C D
Value before Value after
1 Year
Y Depreciation Depreciation Depreciation
2 1 $25,000 $10,000 $15,000
This value must be
3 2 $15,000 $6,000 $9,000
adjusted so that
4 3 $9,000 $3,600 $5,400
the value after
5 4 $5,400 $400 $5,000 depreciation does
6 5 $5,000 $0 $5,000 not go below the
7 0.4(25,000) salvage value.
Double Declining-Balance
Depreciation
$25,000
$20,000
Value
$15,000
$10,000
$5,000
0
0 1 2 3 4 5
Year
Checkpoint Help at