An underground rock mechanics testing device is to be double declining depreciated. It has a first cost of $25,000 and an estimated salvage of $2,500 after 12 years. (a) What is book value and market value ? (b)Calculate the depreciation and book value for years 1 and 4. (c) Calculate the implied salvage value after 12 years.

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Chapter1: Financial Statements And Business Decisions
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An underground rock mechanics testing device is to be double declining depreciated. It has a first cost of $25,000 and an estimated salvage of $2,500 after 12 years.

  • (a) What is book value and market value ?
  • (b)Calculate the depreciation and book value for years 1 and 4.
  • (c) Calculate the implied salvage value after 12 years.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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