Your friend Tom Smith has decided to expand Smith Sales Company.He has acquired an expansion loan and purchased $500,000 of plantassets as part of the expansion. Tom values your advice andrequests your help in properly depreciating the plant assets. Tomhas paid you well for your advice and you readily accept thechallenge.
Explain the different methods that can be used to calculatedepreciation including: Straight-line, Double declining balance,Units of production & Sum of years digits.
