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Building is 350,000, Equipment is 262,500, Truck, 87,500 and cash is 700,000
| The equipment has a salvage value of $10,000, life | |
| expectancy of 5 years. Calculate depeciation for | |
| all years necessary using the double declining balace. | |
| What is the book value at the beginning of year 6? | |
| | | | | | |
| | Depreciation | Book-Value | | |
| Year 1 | | | | | |
| Year 2 | | | | | |
| Year 3 | | | | | |
| Year 4 | | | | | |
| Year 5 | | | | | |
| Year 6 | | | | | |
| | | | | | |
| | | | | | |
| It is planned that the delivery truck will be driven | |
| 200,000miles during its life time of 5 years. Mileage | |
| is as follows: | | | | |
| Year 1: 65,000 miles, Year 2: 79,500 miles, Year 3: 45,325 |
| Year 4: 9,690 miles, Year 5: 8,650 miles. | | |
| | | | | | |
| Calculate depreciation and book value. | | |
| | Depreciation | Book-Value | | |
| Year 1 | | | | | |
| Year 2 | | | | |
| Year 3 | | | | |
| Year 4 | | | | |
| Year 5 | | | | |
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