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Ten years ago a small steam plant of 2000-kw capacity costing $125 per kw was erected. The life was estimated at 15 years and the salvage value at 5%. At present, abandoning the old plant in favor of a new Diesel plant is being considered. A market has been found for the old engine and boiler equipment at $15,000. The remainder of the old plant can be utilized in the new and is given a valuation of $8500. Depreciation has been figured on the straight line basis. What is the difference between the depreciated book value of the old plant and its sale value? How would the difference be taken care of in the reconstruction?

Ten years ago a small steam plant of 2000-kw capacity costing $125 per kw was erected. The life was estimated at 15 years and the salvage value at 5%. At present, abandoning the old plant in favor of a new Diesel plant is being considered. A market has been found for the old engine and boiler equipment at $15,000. The remainder of the old plant can be utilized in the new and is given a valuation of $8500. Depreciation has been figured on the straight line basis. What is the difference between the depreciated book value of the old plant and its sale value? How would the difference be taken care of in the reconstruction?

Elements Of Electromagnetics
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
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Ten years ago a small steam plant of 2000-kw capacity costing $125 per kw was erected. The life was estimated at 15 years and the salvage value at 5%. At present, abandoning the old plant in favor of a new Diesel plant is being considered. A market has been found for the old engine and boiler equipment at $15,000. The remainder of the old plant can be utilized in the new and is given a valuation of $8500. Depreciation has been figured on the straight line basis. What is the difference between the depreciated book value of the old plant and its sale value? How would the difference be taken care of in the reconstruction?
Transcribed Image Text:Ten years ago a small steam plant of 2000-kw capacity costing $125 per kw was erected. The life was estimated at 15 years and the salvage value at 5%. At present, abandoning the old plant in favor of a new Diesel plant is being considered. A market has been found for the old engine and boiler equipment at $15,000. The remainder of the old plant can be utilized in the new and is given a valuation of $8500. Depreciation has been figured on the straight line basis. What is the difference between the depreciated book value of the old plant and its sale value? How would the difference be taken care of in the reconstruction?
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