Question: i . Dawgs Construction bought a front - end loader for $ 1 5 0 , 0 0 0 . The accountant of the company
i Dawgs Construction bought a frontend loader for $ The accountant of the company decided to keep a record of yearly depreciation by developing a depreciation schedule of the equipment using the Straight Line, the Sum of Year's Digits, the Double Declining Balance DDB and the MACRS method of depreciation. If the life of the equipment is classified as a year equipment, with an original Salvage Value of $ replicate the accountant's tables.
ii For the DDB method, what will be the adjusted rate of depreciation in year
iii. Since they sell most of their used equipment to small companies, they have developed a model that helps them determine the best sale price of their used equipment. They use the model below:
Where: is the calculated Book value after years of use this is how much they sell their used equipment for after years of use
is the Book Value after years from the MACRS schedule
is the Book Value after n years from the StraightLine schedule.
is the Book Value after n years from the DDB schedule,
is the Book Value after n years from the SOYD schedule.
If Dawgs Construction sold this equipment after years of use. How much did they sell the equipment for?
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