Exercise 88 






(a)
StraightLine 


Annual Depr 
CostSalvage value divided by years
useful life 


4 
0 


Year 
Computation 
Depr Exp 
Accum Depr 
Net Book Value 


0 
6400 

1 

0 
6400 

2 

0 
6400 

3 

0 
6400 

4 

0 
6400 


(b) Units
of Production 


Annual Depr 
CostSalvage Value divided by
estimated units that will be produced life 

0 


Then, multiply result times actual
units produced during the year 


Year 
Computation 
Depr Exp 
Accum Depr 
Net Book Value 


0 
6400 

1 
0 

0 
6400 

2 
0 

0 
6400 

3 
0 

0 
6400 

4 
0 

0 
6400 


c.
DoubleDeclining Balance Method 


Annual Depr 
Book Value * 2 times SL rate 


Year 1 = 
3200 
(.5 * 6400) 


Year 2 = 
1600 
(.5 * 3200 


Year 3 = 
800 
(.5 * 1600) 


Year 4 = 
400 
(.5 * 800 = 400, but do not exceed
salvage value 

Year 
Computation 
Depr Exp 
Accum Depr 
Net Book Value 


0 
6400 

1 

0 
6400 

2 

0 
6400 

3 

0 
6400 

4 

0 
6400 








