Cisco Systems is purchasing a new bar codescanning device for its service center in San Francisco. The table that on the right lists the relevant cost items for this purchase. The operating expenses for the new system are $11,000 peryear, and the useful life of the system is expected to be

four years. The SV for depreciation purposes is equal to 26% of the hardware cost.

a. What is the BV of the device at the end of year two if the SL depreciation method isused?

b. Suppose that after depreciating the device for oneyear with the SLmethod, the firm decides to switch to the double declining balance depreciation method for the remainder of thedevice's life(the remaining threeyears). What is thedevice's BV at the end of two years?

Cisco Systems is purchasing a new bar code - scanning device for its service center in San Francisco. The table that on the right lists the relevant cost items for this purchase. The operating expenses for the Cost Item Cost new system are $11,000 per year, and the useful life of the system is expected to be four years. The SV for depreciation purposes is equal to 26% of the hardware cost. Hardware $165,000 Training $13,000 Installation $13,000 a. What is the BV of the device at the end of year two if the SL depreciation method is used? b. Suppose that after depreciating the device for one year with the SL method, the firm decides to switch to the double declining balance depreciation method for the remainder of the device's life (the remaining three years). What is the device's BV at the end of two years? a. Using the SL depreciation method the BV of the device at the end of year two is $ . (Round to the nearest dollar.) b. The device's book value at the end of year two using the method described above is $ ]. (Round to the nearest dollar.)