A CNC milling machine has a cost basis of $40,000 and a depreciable life of 10 years The estimated salvage value of the machine is zero at the end of the 10 year period Use the DB method to calculate the annual depreciation amounts when (7 1, 7 2) a R 2 N b R 1 5 'N ...

a From Table 72 the GDS recovery period is 5 years and the ADS rec ...

A CNC milling machine has a cost basis of $40,000 and a depreciable life of 10 years.

Question:

A CNC milling machine has a cost basis of $40,000 and a depreciable life of 10 years. The estimated of the machine is zero at the end of the 10-year period.
Use the DB method to calculate the annual depreciation amounts when (7.1, 7.2)
a. R = 2/N
b. R = 1.5/'N
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...