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Unformatted text preview: $0.28/unit Year 1 = 300,000 units x $0.28 = $84,000
Year 2 = 400,000 units x $0.28 = $112,000
Year 3 = 250,000 units x $0.28 = $70,000
• Double Diminishing Balance
Straight line rate = 1/20 years = 5%/year
Year 1 = 1,500,000 x 10% = $150,000
Year 2 = (1,500,000 – 150,000) X 10% = $135,000
Year 3 = (1,500,000 – 150,000 – 135,000) X 10%
=$121,500...
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 Spring '14

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