Quiz4_Spring08 - )U-J ) f t ;-D O r., J = ~ ~ ~-=-D. L ~ t...

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S L E .- D o t - :C I : U o ! ) I S 0 c J ' L s -c r o ~ \ SCPO l( I SOOO S - SO ( )O CHEE 5369 / 6369 Quiz # 4 (Closed book) Tuesday February 12, 2008 A compan y has purchased computer equipment for $ 25,000 . The compan y does not expect the computers to have a positi v e salvage or trade - in value after the antic i pated 5 - y ear service l i fe. Management would l i ke to compare book depreciation with tax depre c iation book val u es for this equipment . Prepare a tabulation of the book value vs. y ear for each of the methods listed below: - ~ SL ~ DB (125% fixed depre c iation rate annually) v ' " • DDB V MACRS v MACRS depreciation rates for n = 5 are (20%, 32%, 19.2%, 11 . 52%, 11.52%, and 5 . 76% for years 1 to 6, respectivel y ) . D t ~ C~ - ~ ) d - : : . . C ? S / O d O -0 ) 0. 7 . ... ) - 1- D b L ilS O f(J ' ) 6 : : : . l .. - 0 . . , ~ \ \ .. , ~ - \ . ' 2. . S - I D \l ~ ' - ' - u = - .. : .... :: = : =- . - :: : - ~ - 0 . ' LS- p V \ S- - 2 . sp o 0 _ - t \ D t \ 3 \ J ( ) ' 2 -- 0/aJO ) 0 - 0 2 S,O O O - \5,0 0~ I 1. 0'2 - 0 0 \~0S- 0 1 0, ( ) 0 0 2 - Y 1 . o 81 - S '" \ ~ p " , 2 . S - 5 , C O 0 ' ) ' 3 S \ $ '. (0) \ q s L I ( 0 .9 o L { ' 2 .. < . o3~.1 I ~ \O . I' " S - Ict17 . s,. 5 ~ ~L . \o' - D t ~ dg L I-dY '- ) ~ \j c\
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This note was uploaded on 04/13/2011 for the course CHEE 5369 taught by Professor Alim during the Spring '11 term at University of Houston.

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