Question: PLEASE SHOW ALL STEPS SO I CAN FIGURE THIS OUT!!!! Its supposed to be solved using Interest Tables. A loader has an initial cost of

PLEASE SHOW ALL STEPS SO I CAN FIGURE THIS OUT!!!! Its supposed to be solved using Interest Tables.

A loader has an initial cost of $154,000 and an estimated useful life of 8 years. The salvage value after 8 years of use is estimated to be $10,000.

a) What is the annual depreciation amount if the straight-line method of depreciation accounting is used?

b) What is the book value after 6 years if the straight-line method of depcreciation accounting is used?

c) What is the annual depreciation amount in the 5th year if the sum-of-the-years method of depreciation accounting is used?

d) What is the book value at the end of the 6th year if the sum-of-the-years method of depreciation accounting is used?

e) What is the annual depreciation amount in the 4th year if the double-declinging-balance method of depreciation accounting is used?

f) Assume this loader has a recovery period of 5 years in the Modified Accelerated Cost Recovery System (MACRS), what is the annual depreciation amount in the 3rd years? (Annual depreciation rate is given in the following table)

g) Assume this loader has a recovery period of 5 years in the Modified Accelerated Cost Recovery System (MACRS), list annual depreciation amount and book value for every depreciable year. (Annual depreciation rate is given in the following table)

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