New equipment used in construction with a cost basis of $60,000 with a zero salvage value at the end of its useful life of 6 years. Use the Double Declining method to calculate the depreciation charge in year 4.

New equipment used in construction with a cost basis of $60,000 with a zero salvage value at the end of its useful life of 6 years. Use the Double Declining method to calculate the depreciation charge in year 4.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. New equipment used in construction with a
cost basis of $60,000 with a zero salvage
value at the end of its useful life of 6 years.
Use the Double Declining method to
calculate the depreciation charge in year 4.
$7,494
$2,633.75
$5,925.93
$10,000

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