A construction company purchased a large pay loader for $70,000. It has an estimated service life...
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A construction company purchased a large pay loader for $70,000. It has an estimated service life of 7 years. Its market (salvage) value at the end of its service life is estimated at $3,500. a. (5 points) Using the Straight Line Method, what is the book value at the 4th year? b. (10 points) Using Textbook Declining Balance Method, what is the accumulated depreciation cost at the end of the 5th year? c. (10 points) Using Sum-of-the-years-digit method, what is the book value at the 3rd year? d. (5 points) Using Sinking Fund Method with i = 12%, what is the depreciation cost at the end of 7th year? 1 ** A construction company purchased a large pay loader for $70,000. It has an estimated service life of 7 years. Its market (salvage) value at the end of its service life is estimated at $3,500. a. (5 points) Using the Straight Line Method, what is the book value at the 4th year? b. (10 points) Using Textbook Declining Balance Method, what is the accumulated depreciation cost at the end of the 5th year? c. (10 points) Using Sum-of-the-years-digit method, what is the book value at the 3rd year? d. (5 points) Using Sinking Fund Method with i = 12%, what is the depreciation cost at the end of 7th year? 1 **
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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