{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ENG106W12_HW8-solution

# ENG106W12_HW8-solution - ENG 106 Homework#8 Solutions Due...

This preview shows pages 1–3. Sign up to view the full content.

1 ENG 106 Homework #8 Solutions Winter 2012 Due: Wed, Mar 7, 3 pm, HW box 8.7 Consider the following data on an asset: Cost of the asset, I \$110,000 Useful life, N 5 years Salvage value, S \$10,000 Compute the annual depreciation allowances and the resulting book values, using the following methods: a) The straight-line depreciation method and calculate the Present Worth of the deductions , year, t d t dep BV PW d 0 \$110,000 1 \$20,000 \$20,000 \$90,000 \$18,182 2 \$20,000 \$40,000 \$70,000 \$16,529 3 \$20,000 \$60,000 \$50,000 \$15,026 4 \$20,000 \$80,000 \$30,000 \$13,660 5 \$20,000 \$100,000 \$10,000 \$12,418 \$75,816 b) The double declining depreciation method and calculate the Present Worth of the deductions . year, t d t dep BV PW d \$110,000 1 \$44,000 \$44,000 \$66,000 \$40,000 2 \$26,400 \$70,400 \$39,600 \$21,818 3 \$15,840 \$86,240 \$23,760 \$11,901 4 \$9,504 \$95,744 \$14,256 \$6,491 5 \$4,256 \$100,000 \$10,000 \$2,643 \$82,853

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2 8.10 Consider the following data on an asset: Cost of the asset, I \$45,000 Useful life, N 7 years Salvage value, S \$0 Compute the annual depreciation allowances and the resulting book valuesby using the DDB method and then switching to the SL method. year, t DB dep SL dep dep BV t 0 \$45,000 1 \$12,857 \$6,429 \$12,857 \$32,143 2 \$9,184 \$5,357 \$22,041 \$22,959 3 \$6,560 \$4,592 \$28,601 \$16,399 4 \$4,686 \$4,100 \$33,286 \$11,714 5 \$3,347 \$3,905 \$37,191 \$7,809 6 \$2,231 \$3,905 \$41,095 \$3,905 7 \$1,116 \$3,905 \$45,000 \$0 8.11 The double-declining-balance method is to be used for an asset with a cost of \$90,000, estimated salvage of \$12,000, and estimated useful life of six years. (Calculate the depreciation
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}