IE343_HW8_Solutions

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: is more attractive than B. P r ob l e m 2 (10 points) A use f u l p i e c e of d e p r e c i a b l e p r op e r t y w as b ough t f o r $20,000. I f i t h as a u se f u l l i f e of 10 y e a r s a n d a sa l v age v a l u e of $5,000, h ow m u c h w i l l i t b e d e p r e c i a t e d i n t h e 9 t h y e a r , u si n g t h e 150 % d e c l i n i n g b a l a n c e sc h e d u l e? R=1.5/10 = 0.15 (150% DB method) B = $20,000  : Annual depreciation deduction in year k (1 k : Cumulative depreciation through year k : Book value at end of year k   We have As the salvage value is $5,000, the property in year 9 can only...
View Full Document

This note was uploaded on 01/20/2012 for the course INDUSTRIAL 343 taught by Professor Capponi during the Spring '11 term at Purdue University-West Lafayette.

Ask a homework question - tutors are online