This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Example 3 • John wants to estimate the value of a house 20 years after purchase. The house value declines proportionally every year. The purchase price was $245,000 three years ago, and its salvage value now is estimated as $180,000. What is the estimated value of the house after 20 years? Example 4 • A machine has a life of 30 years, costs $245,000, and has a salvage value of $10,000 under the straightline depreciation. What depreciation rate will result in the same book value for both the DB and SL methods at the end of year 20?...
View
Full Document
 Winter '09
 BONKOO
 Depreciation, Generally Accepted Accounting Principles, salvage value

Click to edit the document details