Question: Calculate amortization for the first year (to the nearest dollar) for a capital asset which cost $11,500, has a $500 residual value, and a 10-year

Calculate amortization for the first year (to the nearest dollar) for a capital asset which cost $11,500, has a $500 residual value, and a 10-year estimated life under each of the amortization methods listed below. (a) Straight-line $_____________________. (b) Declining balance $_________________. (c) Productive output (where total potential output is 1,250 units and output for the year is 200 units) $_________________.

(d) Assuming the asset was purchased and in use on March 1, 2020, what would be the depreciation as of December 31, 2020 using declining balance rate. Declining balance rate is 2 times straight line rate.

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