straightline declining switched bookvalue

0 250000
1 23000 50000 50000 200000
2 20000 40000 40000 160000
3 17500 32000 32000 128000
4 15428.6 25600 25600 102400
5 13733.33 20480 20480 81920
6 12384 16384 16384 65536
7 11384 13107.2 13107.2 52428.8
8 10809.6 10485.76 10809.6 41619.2
9 10809.6 8388.6 10809.6 30809.6
10 10809.6 6710.88 10809.6 20000

cost basis ,(B) 52,429

salvage value 20,000
N (useful life) 3
d k* = cummulative depreciation through year k

straight line method = ( B - SVn ) / N Bv = B - Dk

10809.6 52,429

DB method
D1 B * ( 2/N )
34952.5333333333
Dk* B [ 1 - (1 - R ) k ]
 50486.9925925926

EOY, k straight line CMM Book

Value, BVk ($)
0 - 250,000
1 23,500 226,500
2 23,500 203,000
3 23,500 179,500
4 23,500 156,000 25600 -25,600
5 23,500 132,500 20480 -46,080
6 23,500 109,000 16384 -62,464
7 23,500 85,500 13107.2 -75,571
8 23,500 62,000 10485.8 -86,057
9 23,500 38,500 8388.6 -94,446
10 23,500 15,000 6710.8 -101,156
EOY, k CMM CMM Book High- High-Performance
Depreciation, dk Value, BVk ($) Performance Network Computer
($) Network Book Value, BVk ($)
Computer,
Depreciation, dk
($)

0 0 250,000 - 200,000
1 50000 200,000 40,000 160,000
2 40000 160,000 32,000 128,000
3 32000 128,000 25,600 102,400
4 25600 102,400 20,480 81,920
5 20480 81,920 16,384 65,536
6 16384 65,536 13,107 52,429
7 11384 54,152 10,485 41,944
8 11384 42,768 8,388 33,556
9 11384 31,384 6,711 26,845
10 11384 20,000 5,369 21,476
cost basis ,(B) 2,187 D1
salvage value
N (useful life) 7
d k* = cummulative depreciation through year k

straight line method = ( B - SVn ) / N Bv = B - Dk

312.3706285714 2,187

worksheet qn10
depreciation book value
0 10000
1 1600 8400
2 1600 6800
3 1600 5200
4 1600 3600
5 1600 2000

useful life 5 years

salvage value 20000

question 11
depreciation book value
0 10000
1 2857.142857 7142.857143
2 2040.816327 5102.040816
3 874.63 3061.224489
4 624.74 2186.594489
5 1561.854489

useful life 5
salvage value 7787
B * ( 2/N )
624.741257142857
EOY, k straight line CMM Book Value, BVk declining depreciation
($)
0 - 250,000
1 23,500 226,500 50000
2 23,500 203,000 40000
3 23,500 179,500 32000
4 23,500 156,000 25600
5 23,500 132,500 20480
6 23,500 109,000 16384
7 23,500 85,500 13107.2
8 23,500 62,000 10485.8
9 23,500 38,500 8388.6
10 23,500 15,000 6710.8

straightline declining switched

0
1 23000 50000 50000
2 20000 40000 40000
3 17500 32000 32000
4 15428.6 25600 25600
5 13733.33 20480 20480
6 12384 16384 16384
7 11384 13107.2 13107.2
8 10809.6 10485.76 10809.6
9 10809.6 8388.6 10809.6
10 10809.6 6710.88 10809.6
CMM Book Value, BVk ($)

250,000
200,000
160,000
128,000
102,400
81,920
65,536
52,429
41,943
33,554
26,844

bookvalue
250000
200000
160000
128000
102400
81920
65536
52428.8
41619.2
30809.6
20000