Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 9, Problem 16P
To determine
Calculate the
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A machine now in use was purchased four years
ago at a cost of $30,000. It has a book value of
$9,369. It can be sold for $12,000, but it could be
used for three more years, at the end of which
time, it would have no salvage value. What is the
current amount of economic depreciation for this
asset?
Choose from the folowing,
$12,000
$18,000
$32,000
$48,000
A new barcode reading device has an installed cost basis of
$24,160 and an estimated service life of eight years. It will have a
zero salvage value at that time. The 200% declining balance
method is used to depreciate this asset.
a. What will the depreciation charge be in year eight?
b. What is the book value at the end of year seven?
c. What is the gain (or loss) on the disposal of the device if it is
sold for $3,400 after seven years?
A draw bench for precision forming and strengthening of carbon steel tubing has a cost of $1,140,000. It will have a salvage value of
$94,000 after a useful life of 10 years.
Part a
Using the formulas, determine the depreciation charge for year 7 and the book value at the end of year 7 if straight-line
depreciation is used.
Depreciation
charge:
Book value:
$
Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±1.
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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