Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
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Chapter 9, Problem 19P
To determine

Calculate the depreciation.

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An electric bulb bought for P100 is guaranteed to be used for 50 hours. The certain company uses the said bulb 10 hours a day. If there is no scrap value for the bulb, compute the daily depreciation, and create the depreciation table throughout its economic life
On 2021 January 2, a new printing machine was acquired for $900,000. The machine has an estimated salvage value of $100,000 and an estimated useful life of 10 years. The machine is expected to produce a total of 500,000 units of election materials throughout its useful life. Compute depreciation for 2021 and 2022 using each of the following methods: Straight line. Units of production (assume 30,000 and 60,000 units were produced in 2021 and 2022, respectively). Double-declining balance.
Centronix Corporation purchased new equipment with an estimated useful life of five years. The cost of the equipment was $200,000, and the residual (salvage) value was estimated to be $25,000. In purchasing the new equipment, an old machine was traded in that had an original cost of $180,000, and had been depreciated at the rate of $18,000 a year. The trade-in allowance was $21,000, and accumulated depreciation amounted to $144,000 at the time of the exchange. What should be the cost basis of the new equipment for tax depreciation purposes?(a) $200,000(b) $215,000(c) $175,000( d) $190,000
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