salvage value at the time is expected to be $5,000. Book Value = $ 85,000(New Bus) + 10,000 (Old Bus) Bus Asset Class = 9 years Solve for the depreciation using the 3 classical methods, USE a 200% for DBM. 3 CLASSICAL METHODS: 1.) Straight Line 2.) Declining Balance 3.) Sum of the Years Digits
salvage value at the time is expected to be $5,000. Book Value = $ 85,000(New Bus) + 10,000 (Old Bus) Bus Asset Class = 9 years Solve for the depreciation using the 3 classical methods, USE a 200% for DBM. 3 CLASSICAL METHODS: 1.) Straight Line 2.) Declining Balance 3.) Sum of the Years Digits
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter21: Costs And The Supply Of Goods
Section: Chapter Questions
Problem 17CQ
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Question
The La Salle Bus company has decided to purchase a new bus for $85,000 with a trade-in of their old bus. The old bus has a book value of $10,000 at the time of the trade-in. The new bus will be kept for ten years before being sold. Its estimated salvage value at the time is expected to be $5,000.
Book Value = $ 85,000(New Bus) + 10,000 (Old Bus)
Bus Asset Class = 9 years
Solve for the
3 CLASSICAL METHODS:
1.) Straight Line
2.) Declining Balance
3.) Sum of the Years Digits
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