A.

The declining balance method is a method of calculating

depreciation in which the depreciable amount is multiplied by a fixed
rate, called the depreciation rate. The depreciation rate is applied to
the book value (original cost minus accumulated depreciation) of the
asset at the beginning of each period. The book value at the end of
each period is equal to the book value at the beginning of the period
minus the depreciation charge for that period.

To determine the depreciation charge during the 13th year and the
book value at the end of 13 years using the declining balance method,
we first need to determine the depreciable amount, which is the cost
of the piano minus the salvage value.

In this case, the depreciable amount is 90,000 - 5,000 = 85,000.

Next, we need to determine the depreciation rate.

The Depreciation Rate is:

1 - Salvage Value/cost of the Asset / life of Asset

= (1 - 5000/90000) / 17 = 1/17

= 5.88%

The Depreciation for 13th year would be: (Depreciable Amount *

Depreciation Rate)

= (85,000 * 0.0588) = 4,980.

The book value at the end of 13th year is:

(Cost of Asset - (Accumulated Depreciation at 13th Year)) = (90000 -

(13*4980))

= 68,260
B. The sinking fund method is a method of calculating depreciation in
which a portion of the cost of an asset is set aside each year in a
sinking fund to pay for the replacement of the asset at the end of its
useful life. The sinking fund method is used for assets that are
expected to have a relatively long useful life, such as buildings or
equipment, and is particularly useful for assets that have a high
replacement cost.

To determine the depreciation charge during the 13th year and the
book value at the end of 13 years using the sinking fund method, we
first need to determine the annual sinking fund contribution. In this
case, the annual sinking fund contribution is 12% of the cost of the
piano.

So,
(cost of piano + Shipping fee) * sinking fund rate

= (90000 + 10000) * 0.12

= 12,000

The Depreciation for 13th year would be:

(Annual sinking fund contribution * 13)

= 12,000 * 13

= 156,000

The book value at the end of 13th year is:

(Cost of Asset - (Accumulated Depreciation at 13th Year))

= (90000 + 10000 - 156,000)

= -66,000

Please note that the Depreciation and Book Value will be different for
Sinking Fund Method compare to Declining Balance or Straight Line
Method. It is also important to note that the sinking fund method can
result in a negative book value at the end of the asset's useful life,
since the accumulated depreciation may exceed the original cost of
the asset. This negative book value represents the residual value of
the asset, which is the amount that must be paid from the sinking fund
to replace the asset.

(c) Double Declining Balance Method: The double-declining balance

method is a method of calculating depreciation in which the
depreciable amount is multiplied by a fixed rate, called the
depreciation rate, which is double the rate used in the straight-line
method. The depreciation rate is applied to the book value (original
cost minus accumulated depreciation) of the asset at the beginning of
each period. The book value at the end of each period is equal to the
book value at the beginning of the period minus the depreciation
charge for that period.
To determine the Depreciation during the 13th year, we first need to
find the

Depreciation Rate Depreciation Rate

= 2 * Straight Line Rate

= 2*(1/17)

= 0.1176 (11.76%)
The Depreciation for 13th year would be:

(Depreciable Amount * Depreciation Rate * Remaining life of Asset/

usefull life of Asset)

= (85,000 * 0.1176 * 4/17)

= 2,108

The book value at the end of 13th year is:

(Cost of Asset - (Accumulated Depreciation at 13th Year))

= (90000 - (13*2108))

= 74,392

(d) SYD method (Sum of the Year's Digits)

The Sum-of-the-Years'-Digits method is a method of calculating
depreciation in which the depreciable amount is allocated to the years
of the asset's useful life in a decreasing pattern. The SYD method uses
a fraction in which the numerator is the number of years remaining in
the asset's useful life, and the denominator is the sum of the digits
representing the years in the asset's useful life.

First we need to find the Sum of the digits for 17 years:

S = (17 * 18) / 2

= 153

The Depreciation for 13th year would be:

(Depreciable Amount * (Remaining Life of Asset/S))

= (85,000 * (4/153))

= 2,092.47

The book value at the end of 13th year is:

(Cost of Asset - (Accumulated Depreciation at 13th Year))

= (90000 - (13*2092.47))

= 74,307.11