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it is not 36000 An asset was purchased for $100,000. It's estimated residual value is $20,000. The company uses the MACRs method (7 year useful
it is not 36000 An asset was purchased for $100,000. It's estimated residual value is $20,000. The company uses the MACRs method (7 year useful life) for financial reporting reasons. It intends to leave the asset in service for 7 years. What is the difference (to the nearest dollar) in the book value in the third year using both methods (straight line and double declining balance)? HINT: Solve for both SL and DB in the third year. $14,439 $36,000 $12,600 $21.984
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