{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Quiz 8 sec 2 sol

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

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

View Full Document Right Arrow Icon
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 ANS:
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern