E11-5 (page 599) - Depreciation methods; solving for unknowns ? LO2 For each of the following depreciable assets, determine the missing amount (?). Abbreviations for depreciation methods are SL for straight line, SYD for sum-of-the-years' digits, and DDB for double-declining balance. Exercise 11-5 Asset A: Straight-line rate is 20% (1 5 years) x 2 40% DDB rate

24,000 60,000 Book value at the beginning of year 2 .40

Cost - (Cost x 40%) 60,000 .60Cost 60,000 Cost 100,000

Asset B: Sum-of-the-years' digits is 36 {[8 (8 1)]2}

(40,000 - residual) x 7/36 7,000

280,000 - 7residual -------------------------- 7,000 36

280,000 - 7residual 252,000

7residual 28,000

Residual 4,000

Asset C: ...