Question: Cisco Systems is purchasing a new bar code-scanning device for its service center in San Francisco. The table on the right lists the relevant initial

Cisco Systems is purchasing a new bar code-scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 26% of the hardware cost. Cost Item Hardware Training Installation Cost $150,000 $16,000 $14,000 a. What is the cost basis of the device? b. What are the annual depreciations of the device if (I) the SL method is used? (i) the SYD method is used? (ii) the 1 50% DB method is used? (iv) the 200% DB method is used? c. Calculate the book values of the device at the end of 3 years using all the methods above. Answers (a) The cost basis of the device is $(Round to the nearest dollar) (b) Annual depreciaions and book values: (Round to the nearest dollar) Year SL SYD 150% DB 200% DB Book values at end of 3 years
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
