EnergyCorp purchased chip placers for $7500 five years after the previous owner, OilCorp, purchase it new for $25,000. The purchase price was the book value of the device at the time of purchase.

(a) If the depreciation was straight line, what was the charge per year?

(b) Use Excel to plot a graph of the Book Value Vs Time for five years in part (a).

(c) If the depreciation was declining balance, what was the depreciation rate?

(d) Use Excel to plot a graph of the Book Value Vs Time for five years in part (b).

Answer rating: 100% (QA)

Part a Straightline depreciation per ... View the full answer