1. (16 points) Consider the purchase of a new combine. The specific information is:

Purchase price = $750,000.00 Purchase date = Jan 1, 2019

Useful life = 5 years Salvage value = $100,000.00

Complete each depreciation table.

Note: each highlighted box is worth 1 point for a total of 16 points possible

1. Fill in the table using the straight-line method

Year	Remaining value at beginning of year	Depreciation	Remaining value at end of year
2019
2020
2021
2022
2023

AREA TO SHOW WORK MUST SHOW WORK FOR CREDIT:

2. Fill in the table using the straight-line method if the purchase date was October 1, 2019

Year	Remaining value at beginning of year	Depreciation	Remaining value at end of year
2019- Oct 1 to Dec 31	$750,000	$32,500	$717,500
2020	$717,500	$130,000	$587,500
2021	$587,500	$130,000	$457,500
2022	$457,500	$130,000	$327,500
2023	$327,500	$130,000	$197,500
2024- Jan 1 to Sept 30	$197,500	$97,500	$100,000

AREA TO SHOW WORK MUST SHOW WORK FOR CREDIT:

Depreciation= (750,000 100,000)/5 = $130,000

3. Fill in the table using the 200% Declining Balance method, purchase date was Jan. 1, 2019

What is the deprecation rate?

Year	Remaining value at beginning of year	Depreciation	Remaining value at end of year
2019
2020
2021
2022
2023

AREA TO SHOW YOUR WORK MUST SHOW WORK FOR CREDIT: