Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market

Subject:EconomicsPrice: Bought3

Share With

Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You are tasked with computing the depreciation schedule and book value for the patent using double declining balance with a switch to the straight-line method (if necessary). Question 7 Part A: Choose the correct formula for the Double-Declining Balance depreciation method. Depreciation, = (Initial Cost - Salvage Value)/(2*N) where N = the useful life of the project O Depreciation, = (B-1)/N where N = the useful life of the project Depreciation, = (Initial Cost - Salvage Value) /N where N = the useful life of the project Depreciation - Bn-1*(2/N) where N = the useful life of the project Your company purchases a patent for 546,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You are tasked with computing the depreciation schedule and book value for the patent using double declining balance with a switch to SL method (if necessary) Question 1 Part B. Complete the following table to show the depreciation schedule. If it is necessary to switch from DDB to SL depreciation, when the switch occurs, only enter the value of the SL depreciation and enter for the DDB depreciation leg when/if the switch occurs, DDB:0 and SLEX Enter your answers in the form 1234 ?enter for blank table cells) NO DECIMALS Year B-lenter either the number with DDB (enter either the number no decimals, or if blank) with no decimals, or if blank) SL lenter either the number with no decimals, or Olf blank) DDB or SL? lenter DDB, SL, or if neither applies below! D. (enter either the number with Blenter either the number with no decimals, or if blank) no decimals, or if blank) D