One of the methods that the Internal Revenue Service allows for computing depreciation of certain business property is the sum-of-the-years'-digits method. If a property valued at C dollars has an estimated useful life of N years and a salvage value of S dollars, then the amount of depreciation D, allowed during the nth year is given by D (CS)- N-(n-1) SN (0 ≤ n ≤N) where S is the sum of the first N positive integers. Thus, N(N + 1) 2 SN = 1+ 2+ + N = The amount of depreciation allowed for a printing machine, which has an estimated useful life of 5 years and an initial value of $450,000 (with no salvage value), is $90,000/year using the straight-line method of depreciation. Determine the amount of depreciation that would be allowed for the first year if the printing machine were depreciated using the sum-of-the-years'-digits method described above. (Round your answer to the nearest cent.) $ Which method would result in a larger depreciation of the asset in its first year of use? O straight-line method O sum-of-the-years'-digits method
One of the methods that the Internal Revenue Service allows for computing depreciation of certain business property is the sum-of-the-years'-digits method. If a property valued at C dollars has an estimated useful life of N years and a salvage value of S dollars, then the amount of depreciation D, allowed during the nth year is given by D (CS)- N-(n-1) SN (0 ≤ n ≤N) where S is the sum of the first N positive integers. Thus, N(N + 1) 2 SN = 1+ 2+ + N = The amount of depreciation allowed for a printing machine, which has an estimated useful life of 5 years and an initial value of $450,000 (with no salvage value), is $90,000/year using the straight-line method of depreciation. Determine the amount of depreciation that would be allowed for the first year if the printing machine were depreciated using the sum-of-the-years'-digits method described above. (Round your answer to the nearest cent.) $ Which method would result in a larger depreciation of the asset in its first year of use? O straight-line method O sum-of-the-years'-digits method
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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