Question: A warehouse costs $800,000 to construct for Ace Hardware. It has a 15-year life with an estimated resale value of 80% of the construction cost.

A warehouse costs $800,000 to construct for Ace Hardware. It has

A warehouse costs $800,000 to construct for Ace Hardware. It has a 15-year life with an estimated resale value of 80% of the construction cost. However, the building will he depreciated to zero over a recovery period of 30 years. Calculate the annual depreciation charge for years 5, 10, and 25, using (a) straight line depreciation, (b) DDB depreciation, (c) What is the implied salvage value for DDB

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