Homework Answers
Depreciation using SL method in 2nd year = (P-S)/n = (550000 - 50000) / 5 = 100000
DDB Depreciation
n = 2 / 5 = 0.4
Depreciation in 1st year = 0.4 * 550000 = 220000
Book value in 1st year = 550000 - 220000 = 330000
Depreciation in 2nd year = 330000 * 0.4 = 132000
150% DB Depreciation
n = 1.5 / 5 = 0.3
Depreciation in 1st year = 0.3 * 550000 = 165000
Book value after 1st year = 550000 - 165000 = 385000
Depreciation in 2nd year = 385000 * 0.3 = 115500
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