Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Compute the depreciation amount in the third year and the BV at the end of the fifth year of life by each of these methods:

image text in transcribed

image text in transcribed

image text in transcribed

Compute the depreciation amount in the third year and the BV at the end of the fifth year of life by each of these methods: a. The SL method. b. The 200% DB method with switchover to SL. c. The GDS. d. The ADS \begin{tabular}{llrrr} & & & \multicolumn{1}{c}{ Recovery Periods } \\ \cline { 4 - 5 } Asset Class & & Descriptions of Assets & GDS & ADS \\ \hline 00.11 & Office furniture and equipment & 10 & 7 & 10 \\ 00.12 & Information systems, including computers & 6 & 5 & 5 \\ 00.22 & Automobiles, taxis & 3 & 5 & 5 \\ 00.23 & Buses & 9 & 5 & 9 \\ 00.241 & Light general purpose trucks & 4 & 5 & 5 \\ 00.242 & Heavy general purpose trucks & 6 & 5 & 6 \\ 00.26 & Tractor units for use over the road & 4 & 3 & 4 \\ 01.1 & Agriculture & 10 & 7 & 10 \\ 10.0 & Mining & 10 & 7 & 10 \\ 13.2 & Production of petroleum and natural gas & 14 & 7 & 14 \\ 13.3 & Petroleum refining & 16 & 10 & 16 \\ 15.0 & Construction & 6 & 5 & 6 \\ 22.3 & Manufacture of carpets & 9 & 5 & 9 \\ 24.4 & Manufacture of wood products and furniture & 10 & 7 & 10 \\ 28.0 & Manufacture of chemicals and allied products & 9.5 & 5 & 9.5 \\ 30.1 & Manufacture of rubber products & 14 & 7 & 14 \\ 32.2 & Manufacture of cement & 12 & 15 & 20 \\ 34.0 & Manufacture of fabricated metal products & 6 & 12 \\ 36.0 & Manufacture of electronic components, products, and systems & 6 & 5 & 6 \\ 37.11 & Manufacture of motor vehicles & 12 & 7 & 12 \\ 37.2 & Manufacture of aerospace products & 10 & 7 & 10 \\ 48.12 & Telephone central office equipment & 18 & 10 & 18 \\ 49.13 & Electric utility steam production plant & 28 & 20 & 28 \end{tabular} Compute the depreciation amount in the third year and the BV at the end of the fifth year of life by each of these methods: a. The SL method. b. The 200% DB method with switchover to SL. c. The GDS. d. The ADS \begin{tabular}{llrrr} & & & \multicolumn{1}{c}{ Recovery Periods } \\ \cline { 4 - 5 } Asset Class & & Descriptions of Assets & GDS & ADS \\ \hline 00.11 & Office furniture and equipment & 10 & 7 & 10 \\ 00.12 & Information systems, including computers & 6 & 5 & 5 \\ 00.22 & Automobiles, taxis & 3 & 5 & 5 \\ 00.23 & Buses & 9 & 5 & 9 \\ 00.241 & Light general purpose trucks & 4 & 5 & 5 \\ 00.242 & Heavy general purpose trucks & 6 & 5 & 6 \\ 00.26 & Tractor units for use over the road & 4 & 3 & 4 \\ 01.1 & Agriculture & 10 & 7 & 10 \\ 10.0 & Mining & 10 & 7 & 10 \\ 13.2 & Production of petroleum and natural gas & 14 & 7 & 14 \\ 13.3 & Petroleum refining & 16 & 10 & 16 \\ 15.0 & Construction & 6 & 5 & 6 \\ 22.3 & Manufacture of carpets & 9 & 5 & 9 \\ 24.4 & Manufacture of wood products and furniture & 10 & 7 & 10 \\ 28.0 & Manufacture of chemicals and allied products & 9.5 & 5 & 9.5 \\ 30.1 & Manufacture of rubber products & 14 & 7 & 14 \\ 32.2 & Manufacture of cement & 12 & 15 & 20 \\ 34.0 & Manufacture of fabricated metal products & 6 & 12 \\ 36.0 & Manufacture of electronic components, products, and systems & 6 & 5 & 6 \\ 37.11 & Manufacture of motor vehicles & 12 & 7 & 12 \\ 37.2 & Manufacture of aerospace products & 10 & 7 & 10 \\ 48.12 & Telephone central office equipment & 18 & 10 & 18 \\ 49.13 & Electric utility steam production plant & 28 & 20 & 28 \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Assurance And Risk

Authors: W Robert Knechel, Steven E Salterio

4th Edition

1315531720, 9781315531724

More Books

Students also viewed these Accounting questions