Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You are tasked with computing the depreciation schedule and book value for the patent using double declining balance with a switch to SL method (if necessary). Question 1 Part B: Complete the following table to show the depreciation schedule. If it is necessary to switch from DDB to SL depreciation, when the switch occurs, only enter the value of the SL depreciation and enter 0 for the DDB depreciation (eg, when/if the switch occurs, DDB: 0 and SL: X). Enter your answers in the form 1234 (enter 0 for blank table cells). NO DECIMALS Year B. (enter either the number with DDB (enter either the number no decimals, or 0 if blank) with no decimals, or 0 if blank) SL (enter either the number with no decimals, or 0 if blank) DDB or SL? (enter DDB, SL, or 0 if neither applies below) D., (enter either the number with no decimals, or 0 if blank) B., (enter either the number with no decimals, or 0 if blank)
Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You are tasked with computing the depreciation schedule and book value for the patent using double declining balance with a switch to SL method (if necessary). Question 1 Part B: Complete the following table to show the depreciation schedule. If it is necessary to switch from DDB to SL depreciation, when the switch occurs, only enter the value of the SL depreciation and enter 0 for the DDB depreciation (eg, when/if the switch occurs, DDB: 0 and SL: X). Enter your answers in the form 1234 (enter 0 for blank table cells). NO DECIMALS Year B. (enter either the number with DDB (enter either the number no decimals, or 0 if blank) with no decimals, or 0 if blank) SL (enter either the number with no decimals, or 0 if blank) DDB or SL? (enter DDB, SL, or 0 if neither applies below) D., (enter either the number with no decimals, or 0 if blank) B., (enter either the number with no decimals, or 0 if blank)
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:Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You are tasked with computing the depreciation schedule and book value for
the patent using double declining balance with a switch to SL method (if necessary).
Question 1 Part B: Complete the following table to show the depreciation schedule.
If it is necessary to switch from DDB to SL depreciation, when the switch occurs, only enter the value of the SL depreciation and enter 0 for the DDB depreciation (eg. when/if the switch occurs, DDB: 0 and SL: X).
Enter your answers in the form 1234 (enter 0 for blank table cells).
NO DECIMALS
Year
B-1 (enter either the number with DDB (enter either the number
no decimals, or 0 if blank)
with no decimals, or 0 if blank)
SL (enter either the number with
no decimals, or O if blank)
DDB or SL? (enter DDB, SL, or 0 if neither
applies below!
D., (enter either the number with B, (enter either the number with
no decimals, or 0 if blank)
no decimals, or 0 if blank)
10
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