Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 7, Problem 5P
To determine

Calculate the book value.

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A numerically controlled milling machine was purchased for $95,000. The estimated salvage value was $15,000 after 15 years. What is the machine’s book value after 5 years of depreciation? If the machine is sold for $20,000 early in Year 7, how much gain on sale or recaptured depreciation is there? Assume(a) Straight-line depreciation(b) 150% declining balance depreciation(c) 80% bonus depreciation with the balance using 7-year MACRS depreciation(d) 7-year MACRS depreciation
Determine the rate of depreciation, the total depreciation, the total depreciation up to the end of the 8th year and the book value at the end of 8 years for an asset that costs P 15,000 new and has an estimated scrap value of P 2,000 at the end of 10 years by (a) Declining balance method (b) Double Declining balance method
AN EQUIPMENT WAS PURCHASED FOR P500,000.00. END OF LIFE COST AFTER 25 YEARS IS P100,000.00. FIND THE CUMULATIVE DEPRECIATION FOR THE FIRST 3 YEARS USING STRAIGHT LINE METHOD.

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Engineering Economy

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