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solve by hand1 6.19 Equipment for immersion cooling of electronic components has an installed value of...

solve by hand1

6.19 Equipment for immersion cooling of electronic components has an installed value of $182,000 with an estimated trade-in value of $40,000 after 15 years. For years 2 and 10, use DDB book depreciation to determine (a) the depreciation charge and (b) the book value.

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Expert Solution

Interest rate = 2/15 13.33%
i ii=i*13.33% iii=i-ii
year Beginning book vlaue Depreciation Ending book value
1 $             182,000.00 $   24,266.67 $        157,733.33
2 $             157,733.33 $   21,031.11 $        136,702.22
3 $             136,702.22 $   18,226.96 $        118,475.26
4 $             118,475.26 $   15,796.70 $        102,678.56
5 $             102,678.56 $   13,690.47 $          88,988.08
6 $               88,988.08 $   11,865.08 $          77,123.01
7 $               77,123.01 $   10,283.07 $          66,839.94
8 $               66,839.94 $     8,911.99 $          57,927.95
9 $               57,927.95 $     7,723.73 $          50,204.22
10 $               50,204.22 $     6,693.90 $          43,510.32
Therefore
Year 2 charges $   21,031.11
Year 10 charges $     6,693.90
year 2 book value $ 136,702.22
Year 10 book value $   43,510.32

jeff jeffy answered 2 years ago
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