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1. Define the following terms and explain when or why each might be used:
   1. Straight Line Depreciation
   2. Double Declining Balance Depreciation
   3. Units of Production Depreciation
   4. Sum of Years Digit Depreciation

1. As the financial manager, you have been asked to purchase new office furniture and equipment for your company valued at $75,000. The estimated useful life of the purchased items is five (5) years with no salvage (remaining) value. Calculate and fill in the values on the table using the straight line depreciation method.

Year	Beginning Value	Amount Depreciated	Accumulated Depreciation	Remaining Value
0	$75,000	0	0	$75,000
1	--
2	--
3	--
4	--
5	--			$0

1. As the financial manager, you have been asked to purchase new office furniture and equipment for your company valued at $75,000. The estimated useful life of the purchased items is five (5) years with a salvage (remaining) value of 10% of the original cost. Calculate and fill in the values on the table using the straight line depreciation method.

Year	Beginning Value	Amount Depreciated	Accumulated Depreciation	Remaining Value
0	$75,000	0	0	$75,000
1	--
2	--
3	--
4	--
5	--			$7,500

• For Question 1, define the terms and explain when or why each type of depreciation might be used
• For Question 2, calculate the straight line depreciation for the assets over five years with no salvage value.
• For Question 3, calculate the straight line depreciation for the assets over five years with a salvage value of 10%.

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