ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Bartleby Related Questions Icon

Related questions

Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Your colleague has calculated the depreciation schedule for a new computer using four different methods, and has given them to you for your consideration (in the table below). However, he forgot to tell you which depreciation methods he used to calculate those
schedules, and merely labelled them "A", "B", "C", and "D". The values in the table below are the annual depreciation charges for the computer using the various methods he chose.
Identify the depreciation methods and depreciation rate (where applicable) used to arrive at the schedules in columns A, B, C, D and E. Note that the estimated salvage value of the equipment at the end of its 6-year useful life is $20,000. And remember, the values in
the table are the depreciation charges themselves, they are not the remaining book value.
(Note: CCA denotes capital cost allowance; DB denotes declining balance; SOYD denotes sum-of-the-years digits; SL denotes straight line; DDB denotes double declining balance.)
Year
A
B
C
D
E
1
$28,571
$24,000
$18,000
$16,667
$40,000
2
$23,810
$19,200
$30,600
$16,667
$26,667
13
$19,048
$15,360
$21,420
$16,667
$17,778
4
$14,286
$12,288
$14,994
$16,667
$11,852
5
$9,524
$9,830
$10,496
$16,667
$3,704
16
$4,762
$7,864
$7,347
$16,667
Depreciation
method
Depreciation rate
20% -
30% =
33% +
40% =
CCA
DB
SOYD
SL
Last saved at 2:50:12
DDB
Next page
expand button
Transcribed Image Text:Your colleague has calculated the depreciation schedule for a new computer using four different methods, and has given them to you for your consideration (in the table below). However, he forgot to tell you which depreciation methods he used to calculate those schedules, and merely labelled them "A", "B", "C", and "D". The values in the table below are the annual depreciation charges for the computer using the various methods he chose. Identify the depreciation methods and depreciation rate (where applicable) used to arrive at the schedules in columns A, B, C, D and E. Note that the estimated salvage value of the equipment at the end of its 6-year useful life is $20,000. And remember, the values in the table are the depreciation charges themselves, they are not the remaining book value. (Note: CCA denotes capital cost allowance; DB denotes declining balance; SOYD denotes sum-of-the-years digits; SL denotes straight line; DDB denotes double declining balance.) Year A B C D E 1 $28,571 $24,000 $18,000 $16,667 $40,000 2 $23,810 $19,200 $30,600 $16,667 $26,667 13 $19,048 $15,360 $21,420 $16,667 $17,778 4 $14,286 $12,288 $14,994 $16,667 $11,852 5 $9,524 $9,830 $10,496 $16,667 $3,704 16 $4,762 $7,864 $7,347 $16,667 Depreciation method Depreciation rate 20% - 30% = 33% + 40% = CCA DB SOYD SL Last saved at 2:50:12 DDB Next page
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education