Explore BrainMass

Explore BrainMass

    Calculating Depreciation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    See the attached file.
    The Blue Spruce Inn has purchased a shuttle bus to transport guests to and from a local ski lodge. The cost of the bus is $80000; its salvage value is $10000; and its life is five years.

    Required:
    Calculate the second year's depreciation under each of the following methods.
    1. Straight-line
    2. Sum of the years' digits
    3. Double declining balance.

    © BrainMass Inc. brainmass.com October 1, 2020, 8:16 pm ad1c9bdddf
    https://brainmass.com/business/depreciation/calculating-depreciation-different-methods-133218

    Attachments

    Solution Preview

    1. Straight-line

    In straight line method the depreciation is the same every year
    Depreciation per year = (Cost - Salvage Value)/Useful Life
    Depreciation = ...

    Solution Summary

    The solution explains how to calculate depreciation using Straight-line, Sum of the years' digits and Double declining balance method

    $2.19

    ADVERTISEMENT