Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 1 : 0 0 3 8 4 Required information Blackwater Spring and Metal utilizes the same computerized spring - forming machinery in its U

11:00
384
Required information
Blackwater Spring and Metal utilizes the same computerized spring-forming machinery in its U.S. and Malaysian plants. The first cost was $750,000 with S=$150,000 after n=10 years. MACRS (Modified Accelerated Cost Recovery System) depreciation with n=5 years is applied in the United States, and s SL depreciation with n=10 years is used by the Malaysian facility.
\table[[,Depreciation Rate (f) for Each MacRs Recovery Period in Years],[Year,n=3,n=5,n=7,n=10,n=15,n=20,],[1,33.33,20.00,14.29,10.00,5.00,3.75,],[2,44.45,32.00,24.49,18.00,9.50,7.22,],[3,14.81,19.20,17.49,14.40,8.55,6.68,],[4,7.41,11.52,12.49,11.52,7.70,6.18,],[5,,11.52,8.93,9.22,6.93,5.71,],[6,,5.76,8.92,7.37,6.23,5.29,],[7,,,8.93,6.55,5.90,4.89,],[8,,,4.46,6.55,5.90,4.52,],[9,,,,6.56,5.91,4.46,],[10,,,,6.55,5.90,4.46,]]
\table[[7,,80,6.55,500,4],[3,+,4ab,6.55,190,4.52],[9,,,6.86,391,4.46],[n,,,635,5,0,4.4],[11,,,32,5.81,4.46],[12,,,,50,4.45],[15,,,,5**,4.6s],[4,,,,50,in],[is,,,,191,4.4],[4,,,,295,in],[17-30,,,4,,ins],[21,,,,,23]]
If the equipment is sold aher 6 years for $100,000, calculate the over-and underdepreciation amounts for each method.
The oredideprecution anourt is 5 The underdepreciution amount ins
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Financial Instruments

Authors: Frank J. Fabozzi

1st Edition

0471220922, 978-0471220923

More Books

Students also viewed these Finance questions

Question

Design a job advertisement.

Answered: 1 week ago