Straight Line Method

E10-7

Cost - Salvage Value Depreciated cost

30,000 - 2,000 28,000

Depreciated cost Useful life Annual Depreciation

28,000 8 yrs 3,500

Year Dep. Cost Dep. rate annual dep. Acc. Dep. Value

2008 28,000 12.5% 3,500 3,500 24,500

2009 28,000 12.5% 3,500 7,000 21,000

Units of Activity Method

Dep. Cost Total units of activity Dep. Cost per unit

28,000 100,000 miles .28

Dep. Cost per unit unit of activity during year annual dep. Exp.

.28 15,000 miles 4,200 (2008)

.28 12,000 miles 3,360 (2009)

Declining Balance Method

Book value beg. of year declining balance rate Ann. Dep. Rate

30,000 25% 7,500 (2008)

22,500 25% 5,625 (2009)

E10-2

1. Equipment

2. Equipment

3. Plant

4. Property

5. Equipment

6. Property...