11-13
A machine was purchased two years ago for $50,000 and had a depreciable life of five years and
no expected salvage value. The owner is considering an offer to sell the machine for $25,000. For
each of the depreciation methods listed, fill in the table below to determine the deprecation for
year 2, and the book value at the end of year 2. (Assume a five-year MACRS recovery period.)
Straight-line (SL)
Sum-of-years-digits (SOYD)
Double declining balance (DDB)
Modified accelerated cost recovery system (MACRS)
Depreciation End of Year 2
For Year 2
Book Value