Question

In: Economics

A depreciable asset costs $10,000 and has an estimated salvage value of $1600 at the end...

A depreciable asset costs $10,000 and has an estimated salvage value of $1600 at the end of its 6-year depreciable life. Compute the depreciation schedule for this asset by both SOYD depreciation and DDB depreciation.  

Solutions

Expert Solution

Answer:-

Book value Start = $10000

years of life = 6

salvage value = $1600

=> (A) Depreciation schedule as per SOYD depreciation method as prepared in Excel.

=> (B) Depreciation schedule as per DDB (Double declined method) as prepared in excel


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