Homework Answers
a) Straight line Depreciation
| Year | Depreciation expense |
| 1 | (90000-6000/6) = 14000 |
| 2 | 14000 |
| 3 | 14000 |
| 4 | 14000 |
| 5 | 14000 |
| 6 | 14000 |
b) Double decline rate = 100/6*2 = 1/3
| Year | Depreciation expense |
| 1 | 90000/3 = 30000 |
| 2 | 60000/3 = 20000 |
| 3 | 90000*2/3*2/3/3 = 13333 |
| 4 | 26667/3 = 8889 |
| 5 | 17778/3 = 5926 |
| 6 | 5852 |
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