le on Sept. $17$ before class starts. Hard copy submission is required.

A loader has an initial cost of $$154,000$ and an estimated useful life of $8$ years. The

salvage value after $8$ years of use is estimated to be $$10,000.$

a$.$ What is the annual depreciation amount if the straight$-$line method of depreciation

accounting is used?

b$.$ What is the book value after $6$ years if the straight$-$line method of depreciation

accounting is used?

c$.$ What is the annual depreciation amount in the fifth year if the sum$-$of$-$the$-$years

method of depreciation accounting is used?

d$.$ What is the book value at the end of the sixth year if the sum$-$of$-$the$-$years method of

depreciation accounting is used?

e$.$ What is the annual depreciation amount in the fourth year if the double$-$declining$-$

balance method of depreciation accounting is used?

f$.$ Assume this loader has a recovery period of $5$ years in The Modified Accelerated

Cost Recovery System $($MACRS$),$ list annual depreciation amount and book value for

every depreciable year. $($Annual depreciate rate is given in the following table$)$

Table A$-1.3-,5-,7-,10-,15-,$ and $20-$Year Property

Half$-$Year Convention

Straight Line Method: $D_n=\frac{1}{N}(PP-SV),B{V}_n=B{V}_{n-1}-D_n$

SOY Method: $D_n=\frac{N-n+1}{\text{S}\text{O}\text{Y}}(PP-SV),B{V}_n=B{V}_{n-1}-D_n,$SOY$=\frac{N**(N+1)}{2}$