A piece of equipment used for research is purchased for $920,000 and is to be depreciated over a specific period of time. If the salvage value at the end of its depreciable life is $25,000, show the yearly depreciation using:
Straight line method (use the number of letters in your first name for the number of years…..if your first name has less than 5 letters, add 5 to it for the depreciable life)
Double declining balance method (use the number of letters in your first name for the number of years….. if your first name has less than 5 letters, add 5 to it for the depreciable life)
MACRS method (use the appropriate property class for the depreciable life)
Why would you choose one method over another?