Chapter 11, Problem 11.1E

To determine

Methods of Depreciation:

Depreciation refers to the reduction in the monetary value of a fixed asset due to its wear and tear, or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

The four methods of depreciation are:

• Straight-line method
• Sum-of- the-years’ digits method
• Double-declining balance method
• Units-of-production method

To determine: The amount of depreciation expenses under various methods.