Part 8) Depreciation Methods

Jamrock Jeeps Incorporated is in the business of producing fuel efficient all-terrain Jeeps. Jamrock Jeeps purchased a new robotic assembly machine on April 30, 2013 for $8,500,000; that has an estimated life of 10 years; and a Jeep production capacity of 5,000,000. In the engine of the robotic assembly machine is a solid gold covering for the outer mantel of the gear box, the 24 Karat gold covering is used because it is soft and has more give than steel. it is estimated that this gold covering will have a resale value of $1,250,000 at the end of the machine's life.