An item of equipment acquired on Jan 1 at a cost of $100,000 has an estimated life of 10 years. Assuming that the equipment will have a salvage value of $10,000, determine the depreciation for each of the first three years by the:
a) Straight line method
b) Declining balance method
c) Sum of the years 'digits method
Please see the attached file.
P.S. The Sum of Years' Digits method is calculated by first ...
An Excel spreadsheet showing the straight line, declining balance and sum of the years' digits methods of determining an item of equipment's depreciation for its first 3 years.