Put the formula, substitute values then put the answer Glidden Paint manufacturing, purchased mixer that has a first cost of $300,000, a 5-year recovery period, and a $60,000 salvage value. 1- Using MACRS depreciation method find: Depreciation Rate (%) for MACRS Recovery Year n=5 1 20.00 a. depreciation charge for year 2 (D;) b. book value for year 3 (BV3) 32.00 2- Double Declining Balance (DDB) Depreciation find: .3 19.20 11.52 a. depreciation charge for year 2 (D2) 11.52 b. book value for year 3 (BV3) 5.76
Put the formula, substitute values then put the answer Glidden Paint manufacturing, purchased mixer that has a first cost of $300,000, a 5-year recovery period, and a $60,000 salvage value. 1- Using MACRS depreciation method find: Depreciation Rate (%) for MACRS Recovery Year n=5 1 20.00 a. depreciation charge for year 2 (D;) b. book value for year 3 (BV3) 32.00 2- Double Declining Balance (DDB) Depreciation find: .3 19.20 11.52 a. depreciation charge for year 2 (D2) 11.52 b. book value for year 3 (BV3) 5.76
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:Put the formula, substitute values then put the answer
Glidden Paint manufacturing, purchased mixer that has a first cost of $300,000, a 5-year recovery period, and a $60,000 salvage value.
1- Using MACRS depreciation method find:
Depreciation Rate (%) for MACRS Recovery
Year n= 5
a. depreciation charge for year 2 (D2)
b. book value for year 3 (BV3)
1
20.00
2
32.00
2- Double Declining Balance (DDB) Depreciation find:
3
19.20
4
11.52
a. depreciation charge for year 2 (D2)
b. book value for year 3 (BV3)
11.52
6
5.76
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