Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 9, Problem 23P
To determine

Calculate the depreciation.

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A new barcode reading device has an installed cost basis of $22,100 and an estimated service life of eleven 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 eleven? b. What is the book value at the end of year ten? c )What is the gain (or loss) on the disposal of the device if it is sold for $2,800 after ten years?
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?
Some seed cleaning equipment was purchased in 2009 for $8,500 and is depreciated by the double declining balance (DDB) method for an expected life of 12 years. What is the book value of the equipment at the end of 2014? Original salvage value was estimated to be $2,500 at the end of 12years. ANSWER WITH COMPLETE SOLUTION
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