Compute annual depreciation allowances and book values

Reference no: EM13198753

Consider the following data on the asset:

Cost of the asset, I = $100,000
Useful life, N = 5 years
Salvage value, S = $10,000

a. Compute the annual depreciation allowances and the resulting book values, using the straight-line depreciation method. List Bn and Dn values for year 4.

b. Compute the annual depreciation allowances and the resulting book values, using the double-declining balance method. List Bn and Dn values for year 4.

Reference no: EM13198753

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