Question
A machine was purchased for $75,000 four years ago. When purchased, the machine has an estimated life of 10 years, and a salvage value of
A machine was purchased for $75,000 four years ago. When purchased, the machine has an estimated life of 10 years, and a salvage value of $15,000. What is the machines book value after 4 years of depreciation? Assume that the machine has been depreciated under (a) straight-line, (b) double declining balance, (c) 7-year MACRS.
What am i missing in this table? The numbers are not aligning like they should be. With a salvage value of $15,000 at the end of 10 years, i should be getting 15,000 for the last BVt, but i am getting a number much lower. Where am i going wrong?
Please help..
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