Engineering Economics: Depriciation

Problem 9.30 (25 points). Show work matching the table numbers. Consider the data in the following two tables: First cost Book depreciation life MACRS property class Salvage value $80,000 7 years 7 years $24,000 Depreciation Schedule ln 1 $8,000 $22,857 $11,429 $22,857 2 $8,000 $16,327 $19,592 $16,327 3 $8,000 $11,661 $13,994 $11,661 4 $8,000 $5,154 $9,996 $8,330 5 $8,000 6 $8,000 7 $8,000 SO $7,140 $6,942 SO $7,140 $6,942 S0$7,140 $6,942 0 $3,570 %0 %0 Identify the depreciation method used for each depreciation schedule as one of the following. In other words, match the depreciation schedule (A, B, C, D or none) to any of the five depreciation methods below, showing your work to identify the method. (a) Double-declining-balance depreciation (5 pts) (b) Straight-line depression (5 pts) (c) DDB with conversion to depreciation, assuming a zero salvage value (5 pts) (d) MACRS seven-year depreciation with the half-year convention (5 pts) (e) Double-declining-balance (with conversion to straight-line depreciation) (5 pts)