Answers
Explanations | |||||||||||||||
Column A | Sum of Year digits | The depreciation at the end of life of asset is equal to the difference in depreciation of each year | |||||||||||||
Column B | Straight Line | Deprecitaion is equal to each year | |||||||||||||
Column C | MACRS | Depreciation in year 1 is highest among all the other methods | |||||||||||||
Column D | 150% declining balance with conversion to straight line | When compared to Column E its depreciation in year 1 is lower than depreciation in year 1 of column E and there is change to straight line method in year 4 | |||||||||||||
Column E | Double declining balance with conversion to straight line | Same explanation as Column D |
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