During 2012, the company changed from the double-declining-balance method for its building to the straight-line method. The

Question:

During 2012, the company changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $625000.

It had a useful life of 10 years and a salvage value of $50000. The following computations present depreciation on both bases for 2010 and2011.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...