Using the depreciation methods of straight-line


The purchase price of a unit of equipment is $486,500. The estimated useful life is 5 yr with no salvage value. Determine the book value at the end of 2 yr, using the depreciation methods of (a) straight-line, (b) declining-balance, and (c) sum­ of-the-year' s-digits.

If the equipment is assumed to have a salvage value of $45,000 at the end of 5 yr, find the book value at the end of 4 yr using the depreciation methods of straight-line, double-declining-balance, and sum-of-the year's-digits .

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Financial Management: Using the depreciation methods of straight-line
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