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part E ) The book value at end of 2017 based on ADD depreciations is $ ( round to the nearest dollar

part E ) The book value at end of 2017 based on ADD depreciations is $ ( round to the nearest dollar

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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part E ) The book value at end of 2017 based on ADD depreciations is $  ( round to the nearest dollar 

A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company in 2015. The cost basis was $290,000. The plan is to use the equipment and dispose it after about 8 years of service. a). Determine the MACRS-GDS and MACRS-ADS recovery periods for the equipment. b). Determine the annual GDS and ADS depreciation deductions for this property. c). If the company disposes the equipment and sells it sooner in 2017, instead of 2023, what would the the GDS and ADS depreciations for that year? d). Based on (c), what are the corresponding book values under the GDS and ADS depreciations? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a). The GDS recovery period is years. The ADS recovery period is years. b). Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Year The GDS depreciation deductions, $ 2015 2016 2017 2018 2019 2020 Determine the ADS depreciation deductions for this property. (Round to the nearest dollar.) ... Year SA $ EA FA $ SA The ADS depreciation deductions S
Transcribed Image Text:A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company in 2015. The cost basis was $290,000. The plan is to use the equipment and dispose it after about 8 years of service. a). Determine the MACRS-GDS and MACRS-ADS recovery periods for the equipment. b). Determine the annual GDS and ADS depreciation deductions for this property. c). If the company disposes the equipment and sells it sooner in 2017, instead of 2023, what would the the GDS and ADS depreciations for that year? d). Based on (c), what are the corresponding book values under the GDS and ADS depreciations? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a). The GDS recovery period is years. The ADS recovery period is years. b). Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Year The GDS depreciation deductions, $ 2015 2016 2017 2018 2019 2020 Determine the ADS depreciation deductions for this property. (Round to the nearest dollar.) ... Year SA $ EA FA $ SA The ADS depreciation deductions S
structor Year 2015 2016 2017 2018 2019 58.003 2020 2021 c). The GDS depreciation deduction for the year 2017 would be $ (Round to the nearest dollar.) (Round to the nearest dollar) The ADS depreciation deduction for the year 2017 would be $ d). The book value at end of 2017 based on GDS depreciations is $ tv li I MacBook Air The ADS depreciation deductions, S $ $ $ $ ZA M
Transcribed Image Text:structor Year 2015 2016 2017 2018 2019 58.003 2020 2021 c). The GDS depreciation deduction for the year 2017 would be $ (Round to the nearest dollar.) (Round to the nearest dollar) The ADS depreciation deduction for the year 2017 would be $ d). The book value at end of 2017 based on GDS depreciations is $ tv li I MacBook Air The ADS depreciation deductions, S $ $ $ $ ZA M
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