11. An engineer with Accenture Middle East BV in Dubai was asked by her client to help him understand the difference between 150% DB and DDB depreciation. Answer these questions if B = $180,000, n = 12 years, and S = $30,000. a. What are the book values after 12 years for both methods? b. How do the estimated salvage and these book values compare in value after 12 years? c. Which of the two methods, when calculated correctly considering S = $30,000, writes off more of the first cost over 12 years?
11. An engineer with Accenture Middle East BV in Dubai was asked by her client to help him understand the difference between 150% DB and DDB depreciation. Answer these questions if B = $180,000, n = 12 years, and S = $30,000. a. What are the book values after 12 years for both methods? b. How do the estimated salvage and these book values compare in value after 12 years? c. Which of the two methods, when calculated correctly considering S = $30,000, writes off more of the first cost over 12 years?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Aa4
![11. An engineer with Accenture Middle East BV in Dubai was asked by her client to help
him understand the difference between 150% DB and DDB depreciation. Answer these
questions if B = $180,000, n = 12 years, and S = $30,000.
a. What are the book values after 12 years for both methods?
b. How do the estimated salvage and these book values compare in value after
12 years?
c. Which of the two methods, when calculated correctly considering S = $30,000,
writes off more of the first cost over 12 years?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07579278-5b98-4406-8524-442acd690337%2F816b3b99-3cee-4365-8921-c452e763e1fa%2F2drragl_processed.png&w=3840&q=75)
Transcribed Image Text:11. An engineer with Accenture Middle East BV in Dubai was asked by her client to help
him understand the difference between 150% DB and DDB depreciation. Answer these
questions if B = $180,000, n = 12 years, and S = $30,000.
a. What are the book values after 12 years for both methods?
b. How do the estimated salvage and these book values compare in value after
12 years?
c. Which of the two methods, when calculated correctly considering S = $30,000,
writes off more of the first cost over 12 years?
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