A new cyber security system has an installation cost of $300,000. It is in the MACRS- GDS 5-year property class. Upon disposal, the equipment will be given away in return for dismantling and moving it, resulting in a net $0 salvage. Compare MACRS to DDB, DDB- SL (DDB switching to SLN), and SLN depreciation methods by calculating yearly depreciation allowances, and book value for each year using each of the following. Compare and recommend a method based on present worth of the depreciation allowances subject to a 10%.

Answer rating: 100% (QA)

EOY MACRS Depreciation Book value 0 300000 ... View the full answer