An asset was purchased for $100,000. It's estimated residual value is $20,000. The company uses the...
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An asset was purchased for $100,000. It's estimated residual value is $20,000. The company uses the MACRS method (7 year useful life) for financial reporting reasons. It intends to leave the asset in service for 7 years. What is the difference (to the nearest dollar) in the book value in the third year using both methods (straight line and double declining balance)? HINT: Solve for both SL and DB in the third year. O $14,439 O $36.000 O $12,600 O $21 984 An asset was purchased for $100,000. It's estimated residual value is $20,000. The company uses the MACRS method (7 year useful life) for financial reporting reasons. It intends to leave the asset in service for 7 years. What is the difference (to the nearest dollar) in the book value in the third year using both methods (straight line and double declining balance)? HINT: Solve for both SL and DB in the third year. O $14,439 O $36.000 O $12,600 O $21 984
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Answer rating: 100% (QA)
Straight line depreciation rate 15100 20 Double Declining balance rate 220 ... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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