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A surface mount PCB placement/soldering line is to be installed for $1.300,000. It will have a salvage value of $90,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life. Click here to access the MACRS-GDS Table Calculator Part a Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using double declining balance depreciation. ΕΟΥ 0 1 A w N 2 3 5 Sum depreciation Depreciation Balance 20

A surface mount PCB placement/soldering line is to be installed for $1.300,000. It will have a salvage value of $90,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life. Click here to access the MACRS-GDS Table Calculator Part a Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using double declining balance depreciation. ΕΟΥ 0 1 A w N 2 3 5 Sum depreciation Depreciation Balance 20

College Algebra
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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### Depreciation Calculation for PCB Placement/Soldering Line A surface mount PCB placement/soldering line is to be installed for $1,300,000. It will have a salvage value of $90,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life. [Click here to access the MACRS-GDS Table Calculator](#) #### Part A **Goal**: Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using double declining balance depreciation. **Table for Depreciation Calculation:** | EOY (End of Year) | Depreciation | Balance | |-------------------|--------------|---------| | 0 | | | | 1 | | | | 2 | | | | 3 | | | | 4 | | | | 5 | | | | **Sum depreciation** | | | **Instructions for Calculation**: - Calculate the yearly depreciation using the double declining balance method. - Note the unrecovered investment at the end of each year in the balance column. - Sum the depreciations over the 5-year period. This method involves an accelerated depreciation rate, typically twice the straight-line depreciation rate, applied to the declining book value of the asset each year. For detailed calculations and a step-by-step guide on filling out this table, refer to the course materials on depreciation methods, or use the provided MACRS-GDS Table Calculator.
Transcribed Image Text:### Depreciation Calculation for PCB Placement/Soldering Line A surface mount PCB placement/soldering line is to be installed for $1,300,000. It will have a salvage value of $90,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life. [Click here to access the MACRS-GDS Table Calculator](#) #### Part A **Goal**: Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using double declining balance depreciation. **Table for Depreciation Calculation:** | EOY (End of Year) | Depreciation | Balance | |-------------------|--------------|---------| | 0 | | | | 1 | | | | 2 | | | | 3 | | | | 4 | | | | 5 | | | | **Sum depreciation** | | | **Instructions for Calculation**: - Calculate the yearly depreciation using the double declining balance method. - Note the unrecovered investment at the end of each year in the balance column. - Sum the depreciations over the 5-year period. This method involves an accelerated depreciation rate, typically twice the straight-line depreciation rate, applied to the declining book value of the asset each year. For detailed calculations and a step-by-step guide on filling out this table, refer to the course materials on depreciation methods, or use the provided MACRS-GDS Table Calculator.
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