Question: Exercise 1 Dude & Sons have just purchased a machine for $325,000 and an additional $25,000 charge for installation onto a truck for mobility. The

Exercise 1

Dude & Sons have just purchased a machine for $325,000 and an additional $25,000 charge for installation onto a truck for mobility. The expected life is 30 years with a salvage value of 10% of the purchase price. For classical straight-line depreciation determine the first cost, salvage value, annual depreciation amounts and book value after 20 years?

Exercise 2

Assume that your Harley has a first cost of $25,000 and an estimated $4000 Salvage value after 12 years. Calculate its double declining balance (DDB) depreciation and book values for

Year 1 only
Year 4 only
Calculate the salvage value at the end of 12 years for the DDB model

please show all steps ( don't use excel ) !!

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