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Cisco Systems is purchasing a new bar code scanning device for its service center in San Francisco. The device has a cost basis of $190,000
Cisco Systems is purchasing a new bar code scanning device for its service center in San Francisco. The device has a cost basis of $190,000 and a useful life of five years. The SV for depreciation purposes is equal expected to be $40,000 at the end of the 5 years. a) What is the BV of the device at the end of year three if the SL depreciation method is used? b) Suppose that after depreciating the device for two years with the SL method, the firm decides to switch to the double declining balance depreciation method for the remainder of the device's life (the remaining three years). What is the device's BV at the end of our years? 40
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