Assume that a piece of equipment is purchased for $\$ 100,000$. It costs $\$ 5,000$ to install the equipment. We expect it to last for 5 years, and believe that we will be able to sell it for $\$ 25,000$ at the end of that five year period of time.

A. What is the depreciable base for the equipment?

B. Using straight-line depreciation, what is the annual depreciation?

C. After 3 years, how much accumulated depreciation will there be?

D. After 2 years, what is the net or book value of the equipment?

E. If we sell it after 3 years for $\$ 50,000$ will we have to record a gain or a loss? How much?

F. If we were using double declining balance instead of straight line depreciation, how much depreciation would there be in each year of the asset's five year life?