In reporting their taxes, businesses can report the depreciated value of their assets in several ways. Design a Form that allows users to calculate the depreciated value of an asset from the original COST, the SALVAGE VALUE, and the useful LIFE of the asset. The SALVAGE VALUE is the resale value of the asset at the end of the asset’s useful LIFE.
The user should be able to select one of three ways to compute the depreciation, and from it the present value of an asset, given its COST, SALVAGE VALUE, and LIFE:
(1) “Straight Line” assumes the depreciation is the same each year, as given by the formula:
depreciation = (cost – salvage_value ) / life
(2) “Double-declining Balance” depreciates the remaining value of the asset by twice that of the “Straight Line” method, according to the formula:
depreciation = present_value * 2 / life
where present_value is the current depreciated value of the asset in a given year of its life.
(3) “Sum-of-years’ digits” depreciates an asset more during the early part of its life than the later part of its life, according to the formula:
depreciation = 2 * straight_line_deprec * time_left/(life + 1)
where time_left denotes the number of years remaining in the life of the asset.
In all cases, once the depreciation is calculated, the present value of the asset, represented by value_in_year_n, can be computed as follows:
value_in_year_n = value_in_year_(n-1) – depreciation
where: value_in_year_0 = cost
NOTE: Although VB actually provides functions to perform these calculations, it is required that you write your own functions for this purpose.
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