Cost$150,000Training$17,000Installation$15,000Cisco Systems is purchasing a new bar code - scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of thesystem is 4 years and its salvage value for depreciation purposes is expected to be about 28% of the hardware cost.Cost ItemHardwarea. What is the cost basis of the device?b. What are the annual depreciations of the device if(i) the SL method is used?(ii) the 150% DB method is used?(iii) the 200% DB method is used?c. Calculate the book values of the device at the end of 4 years using all the methods above.Answers:(a) The cost basis of the device is $☐ (Round to the nearest dollar)(b) Annual depreciaitions and book values: (Round to the nearest dollar)SLYear12$34Book values at$end of year 4150% DB☐200% DB$$

In tax computations, salvage value is taken into account. Depreciation costs are deducted from…

Cisco Systems is purchasing a new bar code-scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 28% of the hardware cost. a. What is the cost basis of the device? What are the annual depreciations of the device if (i) the SL method is used? (i) the 150% DB method is used? (i) the 200% DB method is used? c. Calculate the book values of the device at the end of 4 years using all the methods above. Answers: (a) The cost basis of the device is $☐ (Round to the nearest dollar) (b) Annual depreciations and book values: (Round to the nearest dollar) Year 1 2 3 Book values at end of year 4 SL 150% DB 200% DB CETTE Cost Item Hardware Cos $150, Training $17, Installation $15,

Cisco Systems is purchasing a new bar code-scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 28% of the hardware cost. a. What is the cost basis of the device? What are the annual depreciations of the device if (i) the SL method is used? (i) the 150% DB method is used? (i) the 200% DB method is used? c. Calculate the book values of the device at the end of 4 years using all the methods above. Answers: (a) The cost basis of the device is $☐ (Round to the nearest dollar) (b) Annual depreciations and book values: (Round to the nearest dollar) Year 1 2 3 Book values at end of year 4 SL 150% DB 200% DB CETTE Cost Item Hardware Cos $150, Training $17, Installation $15,

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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