Question
Hugo and Sons acquired an asset with the following values: First Cost: $10k Te= 48% Salvage Value: $0 Gross Income: $5k per year Life: 5
Hugo and Sons acquired an asset with the following values:
First Cost: $10k Te= 48%
Salvage Value: $0 Gross Income: $5k per year
Life: 5 years Actual Salvage Value after 6 years: $3075
Calculate the depreciation in year 6 using (a) straight line depreciation, and (b) MACRS, and (c) if there is a difference between the two methods why?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
