Railroad cars used to transport coal from Wyoming mines to Texas power plants cost $1 2 million and have an estimated salvage value of $300,000 Develop the depreciation and book value schedules for the GDS MACRS method by using two methods on a spreadsheet the VDB function and the MACRS rates Are t...

Recovery period is 7 years from Table Example MACRS Recovery Periods for Various Asset Descriptions ...

Railroad cars used to transport coal from Wyoming mines to Texas power plants cost $1.2 million and

Question:

Railroad cars used to transport coal from Wyoming mines to Texas power plants cost $1.2 million and have an estimated of $300,000. Develop the depreciation and book value schedules for the GDS MACRS method by using two methods on a spreadsheet-the VDB function and the MACRS rates. Are the book value series the same?

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...