Compute the depreciation amount in the third year

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Reference no: EM13250001

An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000 and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciation amount in the third year and the BV at the end of the fifth year of life by each of these methods:

a. The SL method
b. The 200% DB method with switchover to SL
c. The GDS
d. The ADS

Reference no: EM13250001

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