Question 1

A tractor for over-the-road hauling is purchased for $96,000. It is expected to be of use to the company for 7 years, after which it will be salvaged for $12,000. Use double declining balance depreciation. Depreciation for year 6 = $_____________________

Your Answer:

Question 2

A high-precision programmable router for shaping furniture components is purchased by Henredon for $98,000. It is expected to last 5years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances.

The depreciation deduction using MACRS-GDS allowances for year 5 = $_______________

Your Answer:

Question 3

A small truck is purchased for $20,000. It is expected to be of use to the company for 5 years, after which it will be sold for $6,000 . Determine the depreciation deduction at the fifth year 'using SLN.

Your Answer: