Question: Computer-based central office electronic switching for telephone and data use has an installed cost of $300,000. It is in the MACRS-GDS 5-year property class. Upon

 Computer-based central office electronic switching for telephone and data use has

an installed cost of $300,000. It is in the MACRS-GDS 5-year property

class. Upon disposal, the equipment will be given away in return for

dismantling and moving it, resulting in a net $0 salvage. Compare MACRS

Computer-based central office electronic switching for telephone and data use has an installed cost of $300,000. It is in the MACRS-GDS 5-year property class. Upon disposal, the equipment will be given away in return for dismantling and moving it, resulting in a net $0 salvage. Compare MACRS to traditional depreciation methods by calculating yearly depreciation allowances, present worth of the depreciation allowances, and book value for each year using each of the following. MARR is 10%. Click here to access the MACRS-GDS Table Calculator MACRS-GDS as is proper over 6 years. EOY Depreciation Allowance Book Value 0 $ $ 1 $ $ N $ $ $ 3 $ $ 4 $ $ 5 $ $ 6 $ $ Present Worth of Depreciation Allowances: $ DDB taking a full deduction in the 1st year, with the last deduction in year 5. EOY Depreciation Allowance Book Value 0 $ $ 1 $ $ $ N $ $ 3 $ $ $ $ 4 $ $ $ $ $ $ 6 6 $ $ Present Worth of Depreciation Allowances: $ DDB switching to straight line, taking a full deduction in the 1st year, with the last deduction in year 5. EOY Depreciation Allowanc Book Value 0 $ 1 $ $ 2 $ $ 3 $ 4 $ $ 5 $ $ $ $ 6 6 $ $ Present Worth of Depreciation Allowances: $ SLN taking a full deduction in the 1st year, with the last deduction in year 5. EOY Depreciation Allowance Book Value 0 $ 1 $ $ 2 $ 3 3 $ 4 $ $ $ $ 5 $ $ $ 6 $ $ $ Present Worth of Depreciation Allowances: $

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