Butler Buildings purchased semi-automated as- sembly and riveting robotics equipment for con- structing its modular warehouse buildings. The first cost was $475,000 and installation costs were $75,000; life is estimated at 10 years with a sal- vage of 15% of first cost. Use the SL method to determine (a) annual recovery rate, (b) annual depreciation, (c) book value after 5 years, and (d) book value after 10 years.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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12.12 Butler Buildings purchased semi-automated as-
sembly and riveting robotics equipment for con-
structing its modular warehouse buildings. The
first cost was $475,000 and installation costs were
$75,000; life is estimated at 10 years with a sal-
vage of 15% of first cost. Use the SL method to
determine (a) annual recovery rate, (b) annual
depreciation, (c) book value after 5 years, and
(d) book value after 10 years.
Transcribed Image Text:12.12 Butler Buildings purchased semi-automated as- sembly and riveting robotics equipment for con- structing its modular warehouse buildings. The first cost was $475,000 and installation costs were $75,000; life is estimated at 10 years with a sal- vage of 15% of first cost. Use the SL method to determine (a) annual recovery rate, (b) annual depreciation, (c) book value after 5 years, and (d) book value after 10 years.
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