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help HOMEWORK-DEPRECIATION/TAXES Initial cost Annual Revenue Annual Expense Recovery Period (expected life) Tax Rate MARR $400,000 $160,000 $30,000 5 30% 12% 1. STRAIGHT LINE (SL)
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HOMEWORK-DEPRECIATION/TAXES Initial cost Annual Revenue Annual Expense Recovery Period (expected life) Tax Rate MARR $400,000 $160,000 $30,000 5 30% 12% 1. STRAIGHT LINE (SL) DEPRECIATION, NO SALVAGE VALUE. A. What is the Straight Line Depreciation amount in year 2? B. What is the cumulative depreciation amount in year 2? C. What is the Book Value at the end of year 2? D. What is the Book Value at the end of year 5? 2. STRAIGHT LINE WITH SALVAVAGE VALUE = $60,000 A. What is the Straight Line Depreciation amount in year 3? B. What is the Book Value at the end of year 3? C. What is the Book Value at the end of year 5? 3. DOUBLE DECLINING BALANCE (DDB) DEPRECIATION, NO SALVAGE VALUE. A. Construct a table showing yearly depreciation and book value. B. Construct a table showing DDB switching to Straight-Line Depreciation. 4. DOUBLE DECLINING BALANCE (DDB) WITH SALVAGE VALUE = $60,000. A. Construct a table showing yearly depreciation and book value. 5. MACRS DEPRECIATION A. What is the MACRS Depreciation Amount in year 2? B. What is the cumulative depreciation amount in year 2? C. What is the BV at the end of year 2? D. What is the Book Value at the end of year 5? E. What is the BV at the end of year 6? F. Using MACRS, construct a table showing yearly depreciation and Book Value
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