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Harrison, a facilities manager, would like to purchase a new commercial water filtration system for a building he manages. He estimates this would cost $11,500 and would have a salvage value of $550 after 7 years of use. Using straight-line depreciation, what would be the depreciation allowance and book value after 4 years of use? Depreciation allowance: $ 6257.14 $ Book value: 5242.86 Carry all interim calculations to 5 decimal places and then round your final answers to 2 decimal places. The tolerance is ±3.00.

Harrison, a facilities manager, would like to purchase a new commercial water filtration system for a building he manages. He estimates this would cost $11,500 and would have a salvage value of $550 after 7 years of use. Using straight-line depreciation, what would be the depreciation allowance and book value after 4 years of use? Depreciation allowance: $ 6257.14 $ Book value: 5242.86 Carry all interim calculations to 5 decimal places and then round your final answers to 2 decimal places. The tolerance is ±3.00.

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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Harrison, a facilities manager, would like to purchase a new commercial water filtration system for a building he manages. He estimates this would cost $11,500 and would have a salvage value of $550 after 7 years of use. Using straight-line depreciation, what would be the depreciation allowance and book value after 4 years of use? Depreciation allowance: $ 6257.14 $ Book value: 5242.86 Carry all interim calculations to 5 decimal places and then round your final answers to 2 decimal places. The tolerance is ±3.00.
Transcribed Image Text:Harrison, a facilities manager, would like to purchase a new commercial water filtration system for a building he manages. He estimates this would cost $11,500 and would have a salvage value of $550 after 7 years of use. Using straight-line depreciation, what would be the depreciation allowance and book value after 4 years of use? Depreciation allowance: $ 6257.14 $ Book value: 5242.86 Carry all interim calculations to 5 decimal places and then round your final answers to 2 decimal places. The tolerance is ±3.00.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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