Earthmoving machinery was purchased for $75,000.The machine has an estimated useful life of 10 years.If its salvage value is estimated as $5,000,a. What is the Book Value (BV) of the asset at the endof the fourth year using the SL method?b. Using Double Declining Balance (DDB) method,which year and why you may be able to switch tothe SL method.

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Description: Earthmoving machinery was purchased for $75,000.The machine has an estimated useful life of 10 years.If its salvage value is estimated as $5,000,a. What is the Book Value (BV) of the asset at the endof the fourth year using the SL method?b. Using Do

a) Schedule of depreciation under Straight line method: Depreciation under WDV = (75000-5000)/10 =…

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a. What is the Book Value (BV) of the asset at the end of the fourth year using the SL method? b. Using Double Declining Balance (DDB) method, which year and why you may be able to switch to the SL method.

a. What is the Book Value (BV) of the asset at the end of the fourth year using the SL method? b. Using Double Declining Balance (DDB) method, which year and why you may be able to switch to the SL method.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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