Principles of Engineering Economic Analysis
6th Edition
ISBN: 9781118163832
Author: John A. White, Kenneth E. Case, David B. Pratt
Publisher: Wiley, John & Sons, Incorporated
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Question
Chapter 9, Problem 11P
a:
To determine
Calculate the
b:
To determine
Calculate the declining balance depreciation and book value with MACRS depreciation.
c:
To determine
Calculate the depreciation and book value with double declining balance depreciation.
d:
To determine
Calculate the depreciation and book value with switch between double declining balance depreciation to straight line depreciation.
e:
To determine
Calculate the depreciation and book value with sum of year digit depreciation.
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An asset costs $150,000 and has a salvage value of $15,000 after 10 years.What is the depreciation charge for the 4th year, and what is the book value atthe end of the 8th year with(a)Straight-line depreciation?(b)Double declining balance depreciation?
Your company has purchased a large new trucktractor for over-the-road use (asset class 00:26). It has a cost basis of $185,000. With additional options costing $13,000, the cost basis for depreciation purposes is $198,000. Its MV at the end of six years is estimated as $37,000. Assume it will be depreciated under the GDS:
a. What is the cumulative depreciation through the end of year four?
b. What is the MACRS depreciation in the second year?
c. What is the BV at the end of year one?
Click the icon to view the partial listing of depreciable assets used in business
Click the icon to view the GDS Recovery Rates (r).
a. The cumulative depreciation through the end of year four is $ (Round to the nearest dollar.)
b. The MACRS depreciation in the second year is $ (Round to the nearest dollar.)
c. The BV at the end of year one is $ (Round to the nearest dollar.)
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $176,000. With additional options costing $14,000, the cost basis for depreciation purposes is $190,000. Its MV at the end of six years is estimated as $41,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the fourth year? c. What is the BV at the end of year two?
Chapter 9 Solutions
Principles of Engineering Economic Analysis
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