Quiz 8 sec 2 sol

Quiz 8 sec 2 sol - ANS: EOY,k 1 0.1429*250000 2...

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IE 343 Spring 2010 Name: Section 2, Quiz 8 (last) (first) Closed book, closed notes. No calculators. 1. A large electric saw (asset class 24.4) was purchased by a furniture manufacturing company for $250,000. The company decides to sell the saw at the end of its 5 th year. Determine the GDS depreciation schedule for this asset. Recovery Period Asset Class Description GDS ADS 24.4 Manufacture of wood products and furniture 7 years 10 years
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Unformatted text preview: ANS: EOY,k 1 0.1429*250000 2 0.2449*250000 3 0.1749*250000 4 0.1249*250000 5 0.0893*250000*0.5 2. Determine the ADS depreciation deductions for the 4 th and 5 th years (assuming the asset is sold in the 5 th year). ANS: Depreciation = 250,000/10 = 25,000 ADS depreciation at EOY 4 th = 25,000 ADS depreciation at EOY 5 th = 25,000*0.5 Year GDS Recovery rate r k 1 0.1429 2 0.2449 3 0.1749 4 0.1249 5 0.0893 6 0.0892 7 0.0893 8 0.0446...
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