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A B E F G H K M N 0 1 Two years ago, Praire Dentistry purchased the GE OEC 9900 Elite 12 Vascular
A B E F G H K M N 0 1 Two years ago, Praire Dentistry purchased the GE OEC 9900 Elite 12 Vascular MTS Super C C-ARM Imaging machine and tables for $62,000. The equipment falls into the five-year category for MACRS depreciation and can fetch $26,800 in the used market. The new upgrade with more to offer equipment will cost $152,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. 2 Year Cost Savings 3 1 $64,000 4 2 $56,000 5 3 $54,000 9 4 $52,000 7 OT 5 00 8 9 10 9 $49,000 $41,000 A: What is the book value of the old equipment? 12 13 B: Determine the cash inflow from the sale of the old equipment. 14 15 C: If the Dentistry purchases the new equipment, determine the depreciation schedule for the new equipment. 16
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