Stahmann Products paid $350,000 for a numerical controller during the last month of 2007 and had it installed at a cost of $50,000. The recovery period was 7 years with an estimated salvage value of 10% of the original purchase price. Stahmann sold the system at the end of 2011 for $45,000. Determine the Book Value at the end of 2011 by using a. Straight Line method  b. Declining Balance Depriciation(DDB)  c. Why or why not can you use Sum of Years Digit method? Show your complete solution.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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 Stahmann Products paid $350,000 for a numerical controller during the last month of 2007 and had it installed at a cost of $50,000. The recovery period was 7 years with an estimated salvage value of 10% of the original purchase price. Stahmann sold the system at the end of 2011 for $45,000. Determine the Book Value at the end of 2011 by using

a. Straight Line method 

b. Declining Balance Depriciation(DDB) 

c. Why or why not can you use Sum of Years Digit method?

Show your complete solution.

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