Question: Stahmann Products paid $350,000 for a numerical controller during the last month of 2007 and had it installed at a cost of $50,000. The recovery

Stahmann Products paid $350,000 for a numerical controller during the last month of 2007 and had it installed at a cost of $50,000. The recovery period was 7 years with an estimated salvage value of 10% of the original purchase price. Stahmann sold the system at the end of 2011 for $45,000.

(a) What numerical values are needed to develop a depreciation schedule at purchase time?

(b) State the numerical values for the following: remaining life at sale time, market value in 2011, book value at sale time if 65% of the basis had been depreciated.

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