IE343_HW8_Solutions

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Unformatted text preview: e SL depreciation method is used. b) (15 points) Homework#8Solutions (10 points) P r ob l e m 6 Textbook problem 7-8 (only a and b) a) The SL method b) The 200% DB method with switchover to SL. B = $60,000  : Annual depreciation deduction in year k (1 : Cumulative depreciation through year k : Book value at end of year k  Year,k 0 1 2 3 4 5 dk(200%DB) 0 8,571.42 7,346.93 6,297.37 5,397.75 4,626.64 So no switchover to SL in 5 years. dk(SL) 0 3,428.571 3,032.967 2,673.469 2,344.023 2,038.651 BVk 60000 51,428.57 44,081.63 37,784.26 32,386.51 27,759.86 k...
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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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