Chapter 17, Problem 3CT

To determine

To calculate: The comparison between the pattern for the Accumulated Depreciation column with the data given in End-of-year book value column. The data is given below:

$\begin{array}{cccccc}\begin{array}{l}\text{Total cost:}\\ \text{\$28,000}\end{array}& \text{Year}& \begin{array}{l}\text{Depreciation}\\ \text{rate}\end{array}& \begin{array}{l}\text{Annual}\\ \text{depreciation}\end{array}& \begin{array}{l}\text{Accumulated}\\ \text{depreciation}\end{array}& \text{End-of -year book}\\ \begin{array}{l}\text{Depreciable value:}\\ \text{\$27,000}\end{array}& 1& \frac{5}{15}& \$9,000& \$9,000& \$19,000\\ & 2& \frac{4}{15}& \$7,200& \$16,200& \$11,800\\ & 3& \frac{3}{15}& \$5,400& \$21,600& \$6,400\\ & 4& \frac{2}{15}& \$3,600& \$25,200& \$2,800\\ & 5& \frac{1}{15}& \$1,800& \$27,000& \$1,000\\ & \text{Check}& \frac{15}{15}=1& \$27,000& & \end{array}$