4. Your accountant has sent you the table below showing annual depreciation charges for an asset by five methods. Unfortunately, his FAX machine left out the cost and salvage value of the asset (which apparently has a five year life period) and the column headings. Determine which column is: straight line, sum-of-years digits, 150% declining balance, double declining balance, and units of production. First cost (P) minus salvage value (S) is $10,000. Calculate the first cost and salvage value. Year A B C Ꭰ E 1 $4,500 $2,000 $3,333 $2,500 $6,000 2 3,150 2,000 2,667 1,500 3,600 3 2,205 2,000 2,000 3,000 400 4 145 2,000 1,333 1,000 0 5 0 2,000 667 2,000 0
4. Your accountant has sent you the table below showing annual depreciation charges for an asset by five methods. Unfortunately, his FAX machine left out the cost and salvage value of the asset (which apparently has a five year life period) and the column headings. Determine which column is: straight line, sum-of-years digits, 150% declining balance, double declining balance, and units of production. First cost (P) minus salvage value (S) is $10,000. Calculate the first cost and salvage value. Year A B C Ꭰ E 1 $4,500 $2,000 $3,333 $2,500 $6,000 2 3,150 2,000 2,667 1,500 3,600 3 2,205 2,000 2,000 3,000 400 4 145 2,000 1,333 1,000 0 5 0 2,000 667 2,000 0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:4. Your accountant has sent you the table below showing annual depreciation charges for an
asset by five methods. Unfortunately, his FAX machine left out the cost and salvage value of
the asset (which apparently has a five year life period) and the column headings. Determine
which column is: straight line, sum-of-years digits, 150% declining balance, double declining
balance, and units of production. First cost (P) minus salvage value (S) is $10,000. Calculate
the first cost and salvage value.
Year
A
B
C
Ꭰ
E
1
$4,500
$2,000
$3,333
$2,500
$6,000
2
3,150
2,000
2,667
1,500
3,600
3
2,205
2,000
2,000
3,000
400
4
145
2,000
1,333
1,000
0
5
0
2,000
667
2,000
0
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