Q2/ You purchased computer equipment for $55,000 to use in your own business. You do not expect the computers to have a positive salvage or trade-in value after the anticipated 8-year life. For book depreciation purposes, you want depreciation cost (D) and book value (B) schedules for the following methods: a) Straight-line depreciation method (SL). b) Sum of the year digits (SYD) method.

Q2/ You purchased computer equipment for $55,000 to use in your own business. You do not expect the computers to have a positive salvage or trade-in value after the anticipated 8-year life. For book depreciation purposes, you want depreciation cost (D) and book value (B) schedules for the following methods: a) Straight-line depreciation method (SL). b) Sum of the year digits (SYD) method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Q2/ You purchased computer equipment for $55,000 to use in your own business.
You do not expect the computers to have a positive salvage or trade-in value
after the anticipated 8-year life. For book depreciation purposes, you want
depreciation cost (D) and book value (B) schedules for the following methods:
a) Straight-line depreciation method (SL).
b) Sum of the year digits (SYD) method.

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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