The company treasurer must determine the best depreciation method for office furniture that costs $50,000 and has a zero salvage value at the end of a 10-year depreciable life. Compute the depreciation schedule using:(a) Straight-line(b) Double declining balance(c) 100% bonus depreciation(d) Modified accelerated cost recovery system (MACRS)

(a) Straight-line

depreciation rate per yer (the same for the whole 10 years) = $50,000 / 10 = $5,000 per year

(b) Double declining balance

depreciation rate year 1 = 2 x 1/10 x $50,000 = $10,000

depreciation rate year 2 = 2 x 1/10 x $40,000 = $8,000

depreciation rate year 3 = 2 x 1/10 x $32,000 = $6,400

depreciation rate year 4 = 2 x 1/10 x $25,600 = $5,120

depreciation rate year 5 = 2 x 1/10 x $20,480 = $4,096

depreciation rate year 6 = 2 x 1/10 x $16,384 = $3,277

depreciation rate year 7 = 2 x 1/10 x $13,107 = $2,621

depreciation rate year 8 = 2 x 1/10 x $10,486 = $2,097

depreciation rate year 9 = 2 x 1/10 x $8,389 = $1,678

depreciation rate year 10 = $6,711

(c) 100% bonus depreciation

depreciation rate year 1 = $50,000

(d) Modified accelerated cost recovery system (MACRS)

depreciation rate year 1 = $50,000 x 10% = $5,000

depreciation rate year 2 = $50,000 x 18% = $9,000

depreciation rate year 3 = $50,000 x 14.4% = $7,200

depreciation rate year 4 = $50,000 x 11.52% = $5,760

depreciation rate year 5 = $50,000 x 9.22% = $4,610

depreciation rate year 6 = $50,000 x 7.37% = $3,685

depreciation rate year 7 = $50,000 x 6.55% = $3,275

depreciation rate year 8 = $50,000 x 6.55% = $3,275

depreciation rate year 9 = $50,000 x 6.56% = $3,280

depreciation rate year 10 = $50,000 x 6.55% = $3,275

depreciation rate year 11 = $50,000 x 3.28% = $1,640

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