A. Sum of digits method
>> Sum of years = 10 ( 10 + 1 ) / 2 = 55.
>> Depreciation for 2021 = ( $ 355,000 - $ 25,000 ) * ( 10 / 55 ) * ( 3 / 12 ) = $ 15,000
>> Depreciation for 2022 = ( $ 355,000 - $ 25,000 ) * ( 9.75 / 55 ) = $ 58,500.
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B . Double declining balance
>> Depreciation rate = 150 / 10 = 15 %.
>> Depreciation for 2021 = $ 355,000 * 15 % * ( 3 /12 ) = $ 13,313
>> Depreciation for 2022 = ( $ 355,000 - $ 13,313 ) * 15 % = $ 51,253
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