The cost basis is $81,000. The useful life is five years with no salvage value. Please provide a depreciation schedule (d, for k= 1-5) for 200% declining balance with switchover to straight line. Please specify the year to switchover. Determine the depreciation amounts using the 200% declining balance and straight-line methods and BV amounts for each year. (Round to the nearest dollar.) Depreciation SL Method, $ Amount Selected, 200% DB Year BV, $ Method, $ 1 3 4 Switchover occurs in year
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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