Explain the straight-line depreciation method

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Your presentation should contain a title slide, a properly formatted APA style references page, must contain speaker's notes at the bottom of each slide, and addresses the bulleted items above. You want to use appropriate written spelling and grammar. Be sure to review the Writing Center literature on APA writing style.

Writing Assignment: (Word)

  • Read the scenario below and answer questions 1-3 in a Microsoft Word document. For question 1, give your answer and show your work. For Questions 2 and 3 answer each question in a paragraph of at least 100 words. Use APA format and cite any sources.

Scenario: Sanders Construction Co. specializes in building replicas of historic houses. Brett Sanders, president of Sanders Construction, is considering the purchase of various items of equipment on July 1, 2014 for $300,000. The equipment would have a useful life of 5 years and no residual value. Brett is considering depreciating the equipment by the straight-line method or the double declining balance method.

Answer the following questions:

1. Calculate the depreciation for the first year using the straight-line method and the Double declining balance method, show your work.

2. In a short paragraph, explain the straight-line depreciation method and the Double declining balance method.

3. In your opinion, which method would be better for the company to use, why? Explain your answer.

Reference no: EM132449479

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