IE343_HW8_Solutions

# IE343_HW8_Solutions

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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...
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## 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.

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