6th-Lesson #05 - In-Class Exercise

28unit year 1 300000 units x 028 84000 year 2 400000

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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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