Problem 12 The Tree Line Inn has purchased a shuttle bus to transport guests to and from a local sk lodge. The cost of the bus is $40,000; its salvage value is $4,000; and its life is five years wit expected usable mileage of 100,000. nousioenqob launnA orh aborliom sonclsd ginibab oldan sluols Required: Calculate the first year's depreciation under each of the following methods: 1. Straight-line. 000.0082 to eslea bad insucie mbr snibuib 2. Units of production, assuming the bus traveled 15,000 miles in year 1. diiw a 3. Sum-of-the-years' digits. 00001 buieu 4. Double declining balance.
Problem 12 The Tree Line Inn has purchased a shuttle bus to transport guests to and from a local sk lodge. The cost of the bus is $40,000; its salvage value is $4,000; and its life is five years wit expected usable mileage of 100,000. nousioenqob launnA orh aborliom sonclsd ginibab oldan sluols Required: Calculate the first year's depreciation under each of the following methods: 1. Straight-line. 000.0082 to eslea bad insucie mbr snibuib 2. Units of production, assuming the bus traveled 15,000 miles in year 1. diiw a 3. Sum-of-the-years' digits. 00001 buieu 4. Double declining balance.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:**Problem 12**
The Tree Line Inn has purchased a shuttle bus to transport guests to and from a local ski lodge. The cost of the bus is $40,000; its salvage value is $4,000; and its life is five years with expected usable mileage of 100,000.
**Required:**
Calculate the first year’s depreciation under each of the following methods:
1. **Straight-line**
2. **Units of production**, assuming the bus traveled 15,000 miles in year 1.
3. **Sum-of-the-years' digits**
4. **Double declining balance**
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