A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that...

 

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A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that the useful (class) life of the system is seven years. The expected market (salvage) value is $450 at the end of year seven a. Use the straight line method to calculate depreciation in year three. b. Use the 200% declining balance method to calculate the cumulative depreciation through year four c. Use the MACRS method to calculate the cumulative depreciation through year five d. What is the book value of the GPS receiver at the end of year four when straight line depreciation is used? Click the icon to view the summary of the principal features of GDS under MACRS. Click the icon to view the GDS Recovery Rates (r) a. Using the SL method, the depreciation amount in year three is $ (Round to the nearest dollar) A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that the useful (class) life of the system is seven years. The expected market (salvage) value is $450 at the end of year seven a. Use the straight line method to calculate depreciation in year three. b. Use the 200% declining balance method to calculate the cumulative depreciation through year four c. Use the MACRS method to calculate the cumulative depreciation through year five d. What is the book value of the GPS receiver at the end of year four when straight line depreciation is used? Click the icon to view the summary of the principal features of GDS under MACRS. Click the icon to view the GDS Recovery Rates (r) a. Using the SL method, the depreciation amount in year three is $ (Round to the nearest dollar)

Answer rating: 100% (QA)

a To calculate the depreciation using the straightline method in year three you need to determine the depreciable cost per year The depreciable cost is the initial cost minus the salvage value Given I... View the full answer