{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

L17_ECE4001_Fall_2008

L17_ECE4001_Fall_2008 - Salvage Value Lecture 17 Related...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Slide #1 ECE 4001 L17 T. Michaels © 2008 Lecture 17 Related Economic Issues Slide #2 ECE 4001 L17 T. Michaels © 2008 Salvage Value Salvage Value = Estimated (actual) value of an item at the end of it’s useful life - Cost necessary to dispose of the item Slide #3 ECE 4001 L17 T. Michaels © 2008 Taxes Taxable Income = Total Income - Operating Expenses - Depreciation Depreciation is the decrease in “book” value of a capital equipment item and is deductible as a business expense. Value Market Value Book Slide #4 ECE 4001 L17 T. Michaels © 2008 Depreciation of Equipment • Straight line • Sum-of-years Digits • Accelerated Cost Recovery System (ACRS) • Modified Accelerated Cost Recovery System (MACRS)
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Slide #5 ECE 4001 L17 T. Michaels © 2008 Depreciation of Equipment When Salvage Value is Considered Total Depreciation = Purchase price - Salvage value Total depreciation amount Initial cost of capital equipment Salvage value D C S D C S = - = = = Slide #6 ECE 4001 L17 T. Michaels © 2008 Straight Line Depreciation Method (yearly depreciation expense) exp
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern