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Find the book value at the end of yr 5

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A machine was purchased by a company four years ago for $8,000. Estimated salvage value is $1000 at the end of its 10 years life. The asset is Class 8 (20% CCA rate -- declining balance class, half year rule applicable). Determine the asset's current book value (i.e., at the beginning of Yr. 5) and the depreciation charge during this year (i.e., Yr. 5) by the declining balance method. Also, find the book value at the end of Yr. 5.

Reference no: EM132158809

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