The depreciation schedule for certain equipment has been arrived at by various m

Question

The depreciation schedule for certain equipment has been arrived at by various methods. The estimated salvage value of the equipment at the end of its 6 year useful life is $600. Identify the resulting depreciation schedules.
Year A      B         C         D
1:    $2114 $2667 $1233 1600
2:   1762   1778   1233   2560
3:    1410   1185   1233   1536
4    1057    790     1233   921.60
5    705      527     1233   552.96
6   352       351    1233    331.78
Question 1) Which scheme represents SL depreciation? A B C D
Question 2: Which scheme represents SOYD depreciation? A B C D
Question 3 Which scheme represents CCA depreciation at a rate of 40% depreciation? A B C D
Question 4: Which scheme represents DDB depreciation? A B C D

Explanation / Answer

Question 1) Which scheme represents SL depreciation? A B C D

Answer - C, because under SL the depreciation is constant

Question 2: Which scheme represents SOYD depreciation? A B C D

Answer - A

Question 3 Which scheme represents CCA depreciation at a rate of 40% depreciation? A B C D

(Initial value - salvage value)/6 =1233

Initial value = 8000

1st year Depreciation under CCA = (8000)*40%/2 =1600

Answer D

Question 4: Which scheme represents DDB depreciation? A B C D

B, because under DDB depreciation, first depreciation is double the amount of SL depreciation.

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