A contractor imported a bulldozer for his job paying $260,000 to the manufacturer. Freight and insurance charges amounted to $28,000, custom's broker's fees and arrastre services is worth $8,500 while taxes, permits, and other expenses is worth $38,000. If the contractor estimates the life of the bulldozer to be 10 yrs with a salvage value of $10,000, determine the book value at the end of 6 yrs using a.) double declining balance method and b.) sum of the year's digit.
A contractor imported a bulldozer for his job paying $260,000 to the manufacturer. Freight and insurance charges amounted to $28,000, custom's broker's fees and arrastre services is worth $8,500 while taxes, permits, and other expenses is worth $38,000. If the contractor estimates the life of the bulldozer to be 10 yrs with a salvage value of $10,000, determine the book value at the end of 6 yrs using a.) double declining balance method and b.) sum of the year's digit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A contractor imported a bulldozer for his job paying $260,000 to the manufacturer. Freight and insurance charges amounted to $28,000, custom's broker's fees and arrastre services is worth $8,500 while taxes, permits, and other expenses is worth $38,000. If the contractor estimates the life of the bulldozer to be 10 yrs with a salvage value of $10,000, determine the book value at the end of 6 yrs using a.) double declining balance method and b.) sum of the year's digit.
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