Depreciation Stahmann Products paid $350,000 for a numerical controller during the last month of 2007 and had it installed at a cost of $50,000. The recovery period was 7 years with an estimated salvage value of 10% of the original purchase price. Stahmann sold the system at the end of 2011 for $45,000. Determine the Book Value at the end of 2011 using a. Straight line method and DDB b. Can you use Sum of Years Digit method? Why? c. Was the sale at $45,000 profitable? Show your complete solution and box your answers.

Depreciation Stahmann Products paid $350,000 for a numerical controller during the last month of 2007 and had it installed at a cost of $50,000. The recovery period was 7 years with an estimated salvage value of 10% of the original purchase price. Stahmann sold the system at the end of 2011 for $45,000. Determine the Book Value at the end of 2011 using a. Straight line method and DDB b. Can you use Sum of Years Digit method? Why? c. Was the sale at $45,000 profitable? Show your complete solution and box your answers.

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Description: DepreciationStahmann Products paid $350,000 for a numericalcontroller during the last month of 2007 and had itinstalled at a cost of $50,000. The recovery periodwas 7 years with an estimated salvage value of10% of the original purchase price. Stahma

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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