Homework Answers
1. Straight line method
Depreciation for 2017 = (58000-2000)/7 = $8000
Depreciation for 2018 = $8000
2. Reducing balance method
Depreciation rate = 7 years = 14.29%
Depreciation for 2017 = 58000*14.29% = $8288
Depreciation for 2018 = (58000-8288)*14.29% = $7104
3. Depreciation for 2017 = (58000-2000)*5000/100000 = $2800
Depreciation for 2018 = (58000-2000)*6500/100000 = $3640
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