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4. You purchased a company for $5,500,000. The value of each piece of the company is as follows: Equipment $ 600,000 Building (not including land) $ 4,500,000 Land $ 400,000 The building has an expected salvage value of S2,000,000 and will be depreciated using the ACRS method over 10 years. The equipment will be depreciated using the SOYD method over six years and has no salvage value. Assuming the land does not increase in value what is the book value of the company in five years? Select One: a. 1,689,071 b. 1,728,700 c. 1,745,325 d. 2,089,071 e. 2,487,345

4. You purchased a company for $5,500,000. The value of each piece of the company is as follows: Equipment $ 600,000 Building (not including land) $ 4,500,000 Land $ 400,000 The building has an expected salvage value of S2,000,000 and will be depreciated using the ACRS method over 10 years. The equipment will be depreciated using the SOYD method over six years and has no salvage value. Assuming the land does not increase in value what is the book value of the company in five years? Select One: a. 1,689,071 b. 1,728,700 c. 1,745,325 d. 2,089,071 e. 2,487,345

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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4. You purchased a company for $5,500,000. The value of each piece of the company is as follows: Equipment $ 600,000 Building (not including land) $ 4,500,000 Land $ 400,000 The building has an expected salvage value of $2,000,000 and will be depreciated using the ACRS method over 10 years. The equipment will be depreciated using the SOYD method over six years and has no salvage value. Assuming the land does not increase in value what is the book value of the company in five years? Select One: a. 1,689,071 b. 1,728,700 c. 1,745,325 d. 2,089,071 e. 2,487,345
Transcribed Image Text:4. You purchased a company for $5,500,000. The value of each piece of the company is as follows: Equipment $ 600,000 Building (not including land) $ 4,500,000 Land $ 400,000 The building has an expected salvage value of $2,000,000 and will be depreciated using the ACRS method over 10 years. The equipment will be depreciated using the SOYD method over six years and has no salvage value. Assuming the land does not increase in value what is the book value of the company in five years? Select One: a. 1,689,071 b. 1,728,700 c. 1,745,325 d. 2,089,071 e. 2,487,345
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