Homework 28 Solution

Homework 28 Solution - Homework 28 Solution 12.1a The book...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework 28 Solution 12.1a The book value can be calculated by subtracting all of the depreciation charges from the installed cost: BV 3 = $100,000 – $40,000 – $24,000 – $14,000 = $22,000 12.5 The installed cost of the equipment is $475,000 + $75,000 = $550,000 and the salvage value is 15% of that, or $82,500. Using SL depreciation, the annual depreciation amount is: B S $550,000 $82,500 D $46,750 n1 0   The book value after 5 years can be calculated directly from the first cost as BV 5 = B – 5D = $550,000 – $46,750(5) = $316,250 The book value after 10 years can be calculated the same way: BV 10 = B – 10D = $550,000 – $46,750(10) = $82, 500 This, of course, is equal to the salvage value of the equipment. 12.9 The depreciation rate under DDB depreciation is  100% 200% d 2 40% n5 So each year, the depreciation amount is 40% of the current book value. At the end of Year 2, the book value will be 22 2 BV B 1 d $500,000 0.6 $180,000  so the depreciation amount for Year 3 will be   32 D d BV 0.4 $180,000 $72,000  Under 150% declining balance depreciation, the depreciation rate is 100% 150% d 1.5 30% So each year, the depreciation amount is 30% of the current book value. At the end of Year 2, the book
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/07/2011 for the course CIVL 4111 taught by Professor Moore,l during the Fall '08 term at U. Memphis.

Page1 / 2

Homework 28 Solution - Homework 28 Solution 12.1a The book...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online