Your company has paid $150,000 for heat exchangers for use in petroleum drilling, which it believes will have $15,000 salvage value at the end of the 5-year useful life. Compute the depreciation schedule as indicate in the tables below. Straight-line Depreciation | Book Value | Depreciation | Book Value Year Double declining balance 0150 60% 36¢ 1 12)k 32.4 1944 12く 12.96 4.2584 4 Year 20% bonus + MACRS МАCRS Depreciation | Book Value | Depreciation Book Value Tsok 20 40 52 39,2 31/.52 1 ג כב 36.3k 2 3 E5.93K T8.024 ll.32 /58.334 11.52 3.76 711.52 4 5 12.34K 23.16 23

Your company has paid $150,000 for heat exchangers for use in petroleum drilling, which it believes will have $15,000 salvage value at the end of the 5-year useful life. Compute the depreciation schedule as indicate in the tables below. Straight-line Depreciation | Book Value | Depreciation | Book Value Year Double declining balance 0150 60% 36¢ 1 12)k 32.4 1944 12く 12.96 4.2584 4 Year 20% bonus + MACRS МАCRS Depreciation | Book Value | Depreciation Book Value Tsok 20 40 52 39,2 31/.52 1 ג כב 36.3k 2 3 E5.93K T8.024 ll.32 /58.334 11.52 3.76 711.52 4 5 12.34K 23.16 23

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

Your company has paid $150,000 for heat exchangers for use in petroleum drilling, which it
believes will have $15,000 salvage value at the end of the 5-year useful life. Compute the
depreciation schedule as indicate in the tables below.
Straight-line
Depreciation | Book Value Depreciation Book Value
Year
Double declining balance
0150
60%
36¢
21.6く
12.96
1
12)k
2
32,4
19,44
3
4
5
Year
20% bonus + MACRS
МАCRS
Depreciation Book Value |Depreciation | Book Value
Tsok
120k
40
52
39,2
31.52
1
2132K
36.3k
11.52
11.52
3.76
158.334
51.6.
44.64
4
12.34K
9.167
5
23.76

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