Question
An equipment is bought at $80,000 and the depreciation period is assumed to be 4 years. The salvage value is estimated to be $20,000. What
An equipment is bought at $80,000 and the depreciation period is assumed to be 4 years. The salvage value is estimated to be $20,000. What is the depreciation expense each year using the sum of the years digits approach? Show the calculations please
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| Depreciation | Book value |
| Year 0 (when equipment is purchased) | 0 |
|
| Year 1 |
|
|
| Year 2 |
|
|
| Year 3 |
|
|
| Year 4 |
|
|
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Cost Of Capital In Managerial Finance
Authors: Dennis Schlegel
2015th Edition
3319151347, 978-3319151342
