rate positively ..
Straight line method | |||||||||||
Computation of depreciable value | |||||||||||
i | Total cost | 90000 | |||||||||
ii | Salvage value | 4500 | |||||||||
iii=i-ii | Depreciable value | 85500 | |||||||||
iv | Usefull life = | 3 | |||||||||
v=iii/iv | Annual depreciation = | 28500 | |||||||||
Unit of activity method | |||||||||||
Depreciation per activity = (Total cost - salvage value) / total unit | |||||||||||
Total mile = | (90000-4500)/18000 | 4.75 | |||||||||
Double declining method rate = | =2/3 | ||||||||||
66.67% | |||||||||||
Solution - | |||||||||||
Year | Straight line | Unit of activity | Double declining method | ||||||||
1 | 28500 | 34200 | 4.75*7200 | 60000 | 90000*66.66% | ||||||
2 | 28500 | 25650 | 4.75*5400 | 20000 | (90000-60000)*66.66% | ||||||
3 | 28500 | 25650 | 4.75*5400 | 5500 | (85500-60000-20000) | ||||||
Total | 85500 | 85500 | 85500 | ||||||||
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