Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 2

Exactly 3 years ago, Sports Injury Analysis, Inc.paid $95,000 for a used 1998 GE 1.5T MRI for analyzing spinal and joint injuries caused by sports-related accidents.Depreciation is charged using the government-approved rates for tax purposes over a 4-year period.Annual rates are 33.33%, 44.45%, 14.81%, and 7.41%.
a.Develop the book value schedule for the 4 years.
b.If the MRI is sold now at the expected salvage of $50,000, compare this amount with the current book value.