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Question 6(21 pts ). A research lab purchased some equipments used in research and experimentation costing $300,000. The interest rate is 7%, salvage value is

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Question 6(21 pts ). A research lab purchased some equipments used in research and experimentation costing $300,000. The interest rate is 7%, salvage value is $30,000, and expected life is 5 years. Compute the PW of the depreciation deductions assuming: (a) Straight-line depreciation (b) Double declining balance depreciation (c) MACRS depreciation (5-year class) (d) Which method is preferred for determining the firm's taxes? (e) Which method is preferred for determining the firm's value? (f) Is using two accounting methods ethical? Question 6(21 pts ). A research lab purchased some equipments used in research and experimentation costing $300,000. The interest rate is 7%, salvage value is $30,000, and expected life is 5 years. Compute the PW of the depreciation deductions assuming: (a) Straight-line depreciation (b) Double declining balance depreciation (c) MACRS depreciation (5-year class) (d) Which method is preferred for determining the firm's taxes? (e) Which method is preferred for determining the firm's value? (f) Is using two accounting methods ethical

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