# Calculating Depreciation

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.

https://brainmass.com/business/depreciation/calculating-depreciation-different-methods-133218

#### 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