On January 2, 2000, the Ajax Plumbing Corporation purchases an automatic soldering machine for $18,000. The Corporation plans to transfer the machine to a subsidiary at the end of 2005 for $11,000. Determine the life of the machine so that the book value at the end 2005 will be $11,000, if the salvage value after L years should be $4,000 using: a. SLM b. DDBM

On January 2, 2000, the Ajax Plumbing Corporation purchases an automatic soldering machine for $18,000. The Corporation plans to transfer the machine to a subsidiary at the end of 2005 for $11,000. Determine the life of the machine so that the book value at the end 2005 will be $11,000, if the salvage value after L years should be $4,000 using: a. SLM b. DDBM

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 5P

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