Question: Id like to know which method is the most appropriate for this clinic and why. Thanks a lot. 1. The Nichols Clinic purchased a new
1. The Nichols Clinic purchased a new surgical laser for $80,000. The estimated residual value is $5,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2.200 hours in year 2; 2,400 hours in year 3; 1,800 hours in year 4; 2000 hours in year 5 Required: 1) Compute the annual depreciation for each of the five years under each of the following methods: straight-line . units-of-activity . double declining balance method If you were the administrator of the clinic, which method would you deem as most appropriate? Justify your answer. 2)
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