In: Economics
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.
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