00:01
For this problem, we're determining the depreciation for an asset for three different ways, utilizing this information.
00:09
The asset costs $34 ,000.
00:16
It has a four -year life, and its salvage value is $8 ,900.
00:33
Okay, so doing straight -line depreciation, we'll do that as number one.
00:41
So straight -line depreciation takes the...
00:45
Cost, i'll write it out actually, okay, it takes the cost minus the salvage value divided by the useful life.
01:01
So cost is 34 ,000 minus the salvage value which is 8 ,900 divided by the useful life, which is 4.
01:14
And that is a total of 6275.
01:19
Again, that's depreciation expense, and that's every year using straight line.
01:28
Straight line makes depreciation the same every year.
01:33
So number two, we're going to say double declining balance...