Depreciation Determine the Book Value at the end of 2011 using a. Straight line method and DDB Stahmann Products paid $350,000 for a numerical controller during the last month of 2007 and had it installed at a cost of $50,000. The recovery period was 7 years with an estimated salvage value of 10% of the original purchase price. Stahmann sold the system at the end of 2011 for $45,000. b. Can you use Sum of Years Digit method? Why? c. Was the sale at $45,000 profitable? Show your complete solution and box your answers.

Depreciation Determine the Book Value at the end of 2011 using a. Straight line method and DDB Stahmann Products paid $350,000 for a numerical controller during the last month of 2007 and had it installed at a cost of $50,000. The recovery period was 7 years with an estimated salvage value of 10% of the original purchase price. Stahmann sold the system at the end of 2011 for $45,000. b. Can you use Sum of Years Digit method? Why? c. Was the sale at $45,000 profitable? Show your complete solution and box your answers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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