Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 9, Problem 12P
(a):
To determine
Calculate the value of
(b):
To determine
Calculate the
(c):
To determine
Calculate the Book value.
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Students have asked these similar questions
Calculate the value of depreciation of gross
value is $120 million and the net value is
$100 million
A company purchased new mining equipment in year 2018 by paying $400,000 cash. The company plans to keep the equipment for several years and use MACRS-GDS depreciation for tax purposes.
Click the icon to view the partial listing of depreciable assets used in business.
Click the icon to view the GDS Recovery Rates (k).
Calculate the depreciation that the company claimed on the asset for year 2 of ownership.
OA. $48,980
OB. $34,980
OC. $17,840
O D. $69,960
○ E. $97,960
Calculate the book value of the asset at the end of year 2.
OA. $365,020
OB. $293,860
OC. $209,900
More Info
O D. $244,880
O E. $174,920
C
More Info
GDS Recovery Rates (r) for the Six Personal Property Classes
Recovery Period (and Property Class)
Year
3-year
5-year
7-year³
10-year²
15-yearb
20-yearb
1
0.3333
0.2000
0.1429
0.1000
0.0500
0.0375
2
0.4445
0.3200
0.2449
0.1800
0.0950
0.0722
3
0.1481
0.1920
0.1749
0.1440
0.0855
0.0668
4
0.0741
0.1152
0.1249
0.1152
0.0770
0.0618
0.1152
0.0893
0.0922
0.0693
0.0571
0.0576
0.0892…
Thank you
A drilling machine was acquired by Western Harverster Co at a cost (B) = $50,000 with a 5-year recovery period and salvage value S =$10,000. What is the depreciation in year 3 using MACRS? Using MACRS, what fraction of the initial $50,000 will be cumulatively depreciated by the end of year 3? If MACRS depreciation is used, what is the Book Value at the end of year 2?
Chapter 9 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8PCh. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52PCh. 9 - Prob. 53PCh. 9 - Prob. 1STCh. 9 - Prob. 2STCh. 9 - Prob. 3STCh. 9 - Prob. 4ST
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