Question
Please solve by hand A machine was purchased at fair market price for $43,000 and is expected to have a deprecible life of 8 years.
Please solve by hand
A machine was purchased at fair market price for $43,000 and is expected to have a deprecible life of 8 years.
a] Using the straight-line method, what are the depreciation amounts for each of the next 8 years? Assume for this particular book depreciation method that the asset will have an expected salvage value of $2,800 at the end of the depreciable life.
b] If the double-declining balance (200 % DB) method is used, what are the depreciation amounts for the next 8 years? Please do not consider the salvage value in this part.
Note: This is book depreciation analysis so the half-year rule does not apply
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