A small truck is purchased for $22,000. It is expected to be of use to the company for 6 years, after which it will be sold for $4,000. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset’s life.

For each case find depreciation deduction and unrecovered investment from year 0-6

Use straight-line depreciation:

Use declining balance depreciation using a rate that ensures the book value equals the salvage value:

Use double declining balance depreciation:

Use double declining balance switching to straight line depreciation:

Use sum-of-years-digits depreciation: