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Calculate the book values for the useful life of the asset, and show your work in your dropbox submission.

Calculate the book values for the useful life of the asset, and show your work in your dropbox submission.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A vacuum packing unit is purchased by a meat packing plant that has a cost basis of $114,527.88. It's year 1 book value is $57,011.0, and it's salvage value after 10 years is $10,686.67. An engineer wants to determine the salvage value of the device and chooses to model it as a declining balance. What % declining balance should be used based on the numbers above? Enter this below as a decimal (i.e. if you found it was 50%, enter 0.5), accurate to two decimal places. Calculate the book values for the useful life of the asset, and show your work in your dropbox submission.
Transcribed Image Text:A vacuum packing unit is purchased by a meat packing plant that has a cost basis of $114,527.88. It's year 1 book value is $57,011.0, and it's salvage value after 10 years is $10,686.67. An engineer wants to determine the salvage value of the device and chooses to model it as a declining balance. What % declining balance should be used based on the numbers above? Enter this below as a decimal (i.e. if you found it was 50%, enter 0.5), accurate to two decimal places. Calculate the book values for the useful life of the asset, and show your work in your dropbox submission.
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