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Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 1
A major energy production company has the following information regarding the acquisition of new-generation equipment.
Purchase price = $580,000
Transoceanic shipping and delivery cost = $4300
Installation cost (1 technician at $1600 per day for 4 days) = $6400
Tax recovery period = 15 years
Book depreciation recovery period = 10 years
Salvage value = 10% of purchase price
Operating cost (with technician) = $185,000 per year
The manager of the department asked the newest hire to enter the appropriate data in the tax accounting program. For the MACRS method, what are the values of B , n, and S in depreciating the asset for tax purposes
Purchase price = $580,000
Transoceanic shipping and delivery cost = $4300
Installation cost (1 technician at $1600 per day for 4 days) = $6400
Tax recovery period = 15 years
Book depreciation recovery period = 10 years
Salvage value = 10% of purchase price
Operating cost (with technician) = $185,000 per year
The manager of the department asked the newest hire to enter the appropriate data in the tax accounting program. For the MACRS method, what are the values of B , n, and S in depreciating the asset for tax purposes
Explanation
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Depreciation is way of accounting the va...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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