Question: Problem 7.14%. A special manufacturing machine will cost 500.000 TL now. Salvage value will be 100.000 KD after 5 years. a) Determine annual Straight-Line Depreciation

Problem 7.14%. A special manufacturing machine will cost 500.000 TL now. Salvage value will be 100.000 KD after 5 years. a) Determine annual Straight-Line Depreciation (Du) amount and Book Value (BVD for each year t. Use the table below. Note: Depreciation Rate is d=1, D=B where B=BVo is the initial cost and BV BVS1-D End of Year 0 Depreciation 0 Book Value BV 500000 1 2 3 4 5 b) Determine annual depreciation and book values using double declining balance method (DDB-Rate-2) (Remember the last book value cannot be less than the final salvage value) Note: Rate is d=2 Ded*BV1 and BV-B"(1-0) or BV-BV.-D. End of Year 0 Depreciation 0 Book Value 500000 1 2 3 4 5 * hp Netence Many REVIEW e me what you want to ... d have been disabled because it hasn't been activated. Activate b) Determine annual depreciation and book values using double declining balance method (DDB-Rate 2) (Remember the last book value cannot be less than the final salvage value) Note: Rate is d=2 D=dB and BV=B*(1-0) or BV=BV1.1-D. End of Year 0 Depreciation 0 Book Value 500000 1 2 3 4 5 c) Which method is better if you assume time value of money and the depreciation amount is deducted from taxable income, prove it States * a hp
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
