Question: EE Home Assignment 8 - Depreciation ( Chapter 1 2 ) 1 . This assignment contains THREE Problems. 2 . All the problem must be

EE Home Assignment 8- Depreciation (Chapter 12)1. This assignment contains THREE Problems. 2. All the problem must be complete with MS Excel (not using MS Excel will result Zero grade).3. Show your work for full credit. Just showing the answer values will result Zero grade).
Problem 1-10 points 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. Problem 2-10 points Company B purchased equipment that cost 750,000 with salvage value of 150,000 after 10 year for both plant in the United States and Hong Kong. MACRS depreciation with \( n=5\) year is applied in the United States and standard SL depreciation with \(\mathrm{n}=10\) years is used in Hong Kong. 1. Develop and graph the book value for both plants. 2. If the equipment is sold after year 10 for 100,000, find the over or under depreciated amounts for each plant. Problem 3-10 points For the last 10 years, a coal company use the cost depletion factor of 2,500 per 100 tons to write off the investment of 35 million. Depletion thus far totals 24.8 million. A new study apprises mine reserves indicates that no more than 800,000 tons of coals remains. Determine next year's percentage and cost depletion amount. The estimated gross income is expected to be between 6.125 and 8.5 million on a production level of 72,000 tons.
EE Home Assignment 8 - Depreciation ( Chapter 1 2

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