In: Economics
4) Compute the depreciation and book value each year of a machine that costs $67,000 to purchase and $3,000 to install with an 8-year life. Use the double declining balance method with switching to straight line depreciation. (a) Fill out the following table, assuming a $1,000 salvage value. (b) What would be D7 if the salvage value was $18,000?
n |
Dn |
Bn |
|
DBB |
SL |
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0 |
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1 |
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2 |
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3 |
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4 |
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5 |
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6 |
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7 |
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8 |