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Question: A business equipment used for the manufacture of commercial goods can be purchased for $30,000. This asset is expected to be sold after 4 years for $6,000. Compute the depreciation amounts every year (depreciation schedule) during the useful life of this asset. Please refer to a current tax regulations1 for CCA rates. Please attempt using the following methods:
[a] Straight-line (SL) method (Book Depreciation)
[b] Double-declining-balance (DDB) method (Book Depreciation)
[c] DDB switching to SL method (Book Depreciation)
[d] CCA depreciation as a class 8 asset (Tax Depreciation)
Hint: Please do not depreciate below salvage value for methods [a], [b], and [c]. You may depreciate below salvage value for method [d] and [e] if it is necessary. Please note that the half-year rule applies by default to Tax Depreciation.
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