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Sensation and Five Sense

In: Philosophy and Psychology

Submitted By Karitha06
Words 332
Pages 2
Name: Karitha McDowell

Date: 12/9/2014

Course Name and Section Number: AB113-01

Unit Number: 8

Assignment Name: Unit 8 Writing Assignment

Page Numbers: 257-260

1. Straight line method: 60,000
Initial cost: 300,000 (300,000-0)/5=60,000 1st year
Residual value: 0
Expected useful life: 5years

Double declining balance: 120,000
Initial cost: 300,000 (300,000x40%) = 120,000 Depreciation for first year
Expected life: 5 years (300,000-120,000) = 180,000 Book value for first year
Straight line percentage: (100%/5) = 20%
Double decline balance rate: (20%x2) =40%

2. Straight line depreciation method charges an evenly cost throughout the useful life of a fixed asset. This depreciation method it appropriate where economic benefits from an asset are expected to be realized evenly over its lifetime. It’s a more convenient method to use when there’s no reliable estimate can be derived over an assets life. Double declining balance depreciation method is an accelerated depreciation method that counts twice as much of the asset’s book value each year as an expense compared to straight-line depreciation. The double declining balance method of depreciation is also known as the 200% declining balance method of depreciation. 3. In my humble opinion I believe that it would be better for Brett Saunders to use the straight line method of depreciation. The reason I feel so strongly about this decision is because one it is the most commonly used method amongst business. It also has a less residual cost and it is a constant depreciation expense. And I believe it to be less of a hassle. If he used the other method he has a higher depreciation amount in the first year of the asset's use, followed by declining amounts. The only time the double declining depreciation method is better is when an assets revenues are greater in the early years of its useful...

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