Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 9, Problem 2P
To determine

Identify the economic depreciation.

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Your company bought a new machine for $39,000. The machine falls into the 7 - year MACRS category: Year Depreciation rate 1 14.29% 2 24.49% 3 17.49% 4 12.49% 58.93% 68.92% 78.93% 84.46% What is the allowed amount of depreciation for year 3? What is the allowed amount of depreciation for year 3?
A builder paid $120,000 for a house and lot. The value of the land was appraised at $65,000, and the value of the house at $55,000. The house was then torn down at an additional cost of $8,000 so that a warehouse could be built on the lot at a cost of $50,000. What is the total value of the property with the warehouse? For depreciation purposes, what is the cost basis for the warehouse?
MalMax purchased a depreciable asset. What would be the difference in total assets at the end of the first year if MalMax chooses straight-line depreciation versus double-declining-balance depreciation?
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