For depreciation purposes, a 150% declining balance depreciation is used for a material handling lift truck...

 

Transcribed Image Text:

For depreciation purposes, a 150% declining balance depreciation is used for a material handling lift truck with a cost basis of $23,000 and a salvage value of $6250 at the end of its useful life of 5 years. If the MACRS depreciation method with a 3-year recovery period is used for tax purposes, determine the difference between the annual depreciation after 2 years calculated from both depreciation methods. For depreciation purposes, a 150% declining balance depreciation is used for a material handling lift truck with a cost basis of $23,000 and a salvage value of $6250 at the end of its useful life of 5 years. If the MACRS depreciation method with a 3-year recovery period is used for tax purposes, determine the difference between the annual depreciation after 2 years calculated from both depreciation methods.

Answer rating: 100% (QA)

Both DB and MACRS methods ignores salvage value a 1... View the full answer