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A firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage
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A firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage value was estimated to be $10,000 at the end of year 8. Using the Double-Declining Balance (DDB) Method, what is the amount of "alpha"?
A. 1/8 = .125
B. 2/8 = .25
C. 1/5 = .2
D. 2/5 = .4
A firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage value was estimated to be $10,000 at the end of year 8. Using the Double-Declining Balance (DDB) Method, what is the amount of "alpha"?
A. | 1/8 = .125 | |
B. | 2/8 = .25 | |
C. | 1/5 = .2 | |
D. | 2/5 = .4 |
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