Illinois company 18.02a

I am having trouble figuring out how to do the Sum of Year

Illinoise Company

Straight-Line Method

Year  Acquistion Cost   Salvage Value   Useful Life in Yrs  Annual Dep Acc                                                                                                                            Dep

1         $550,000              $50,000                   4                     $125000       $125000

2         $425,000              $50,000                   4                     $125000       $250K

3         $300,000              $50,000                   4                     $125000        $375K

Salvage amount: $50,000

Year    Fraction   Cost Less Salvage   Annual Dep. Accum. Dep.

1              0.40               55,0000

2

3

Double-Decling Balance Method

Year     Beg. Book Value    Rate   Annual Dep.   Accum. Dep.

Analyze: The book value at the end of the second year is: