Company A purchased equipment. The cost for the equipment is 500,000. Estimated salvage value after 5...

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Company A purchased equipment. The cost for the equipment is 500,000. Estimated salvage value after 5 years is 50,000. 1. Determine the depreciation for year 3 using DDB, 150% DB and SL methods. 2. For DDB and 150% DB methods, determine the implied salvage after 5 years. 3. Calculate the depreciation rate d for each year for the DDB method. 4. Plot the book value of DDB and SL depreciation. Company A purchased equipment. The cost for the equipment is 500,000. Estimated salvage value after 5 years is 50,000. 1. Determine the depreciation for year 3 using DDB, 150% DB and SL methods. 2. For DDB and 150% DB methods, determine the implied salvage after 5 years. 3. Calculate the depreciation rate d for each year for the DDB method. 4. Plot the book value of DDB and SL depreciation.

Answer rating: 100% (QA)

1 a MACRS MACRS Depreciation schedule as follows This method ignores salvage value Year Cost Depreci... View the full answer