FARM MANAGEMENT - Basic Depreciation Assignment

Calculate the Straight Line and Double Declining Balance Depreciation for the two assets in the chart below. The tractor cost $50,000, a salvage value of $5,000 and a useful life of 5 years. The new bull costs $4000, has a $1,000 salvage value, and a useful life of 4 years.

First, calculate the yearly depreciation using the Straight Line (S.L.) method. Then calculate the depreciation using the Double Declining Balance (D.D.B.) method. Show the amount of depreciation in the blank for each of the years applicable. With both assets, the depreciation in the last year should be limited when using DDB. SHOW YOUR WORK AND ANSWERS IN THE BOXES BELOW

Asset. Cost or basis. salvage value Deprec 1st. 2nd. 3rd. 4th. 5th

method. year. year. year. year. year

New Tractor	50000	5000	S.L.
New Bull	4000	1000	S.L.
New Tractor	50000	5000	D.D.B.
New Bull	4000	1000	D.D.B.