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Robotics International Inc. purchased a Robotic machine. The first unadjusted basis cost was for $90,000. The unit has an expected life of 5 years and
Robotics International Inc. purchased a Robotic machine. The first unadjusted basis cost was for $90,000. The unit has an expected life of 5 years and a salvage value of $10,000. a. Calculate the annual SL depreciation for 5 years and plot the yearly book value. b. Calculate and compare the schedules for annual depreciation and book value using two methods: DB at 150% of the straight line rate and at the DDB rate. c. Plot the book values of the two declining balance methods (DB and DDB). d. How is the estimated $10,000 salvage value used?
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