Answer:
(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
