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 8P
To determine

Calculate the depreciation.

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please use the DDB method A firm is trying to decide whether to keep an item of construction equipment for another year. The firm has been using DDB for book purposes, and this is the fourth year of ownership of the equipment, which cost $125,000 new. The useful life of the asset was eight years. What was the depreciation in year 3?
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?
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