A grader has an initial cost of $220,000 and an estimated useful life of 10 years....
A grader has an initial cost of $220,000 and an estimated useful life of 10 years. The salvage value after 10 years of use is estimated to be $25,000. What is the book value at the end of the eleventh year if the MACRS method of depreciation accounting is used? Select one: a. $0 b. $7,216 c. $19,500 d. $25,000
Homework Answers
When we use MACRS method of depreciation , no salvage value is used in calculations.
Till 10th year Asset gets depreciated @ ( 100 -3.28)% = 96.72%
The book value at the end of 10th year would be 3.28%. = $ 220,000 x 3.28% = $ 7,216.
Hence , Correct Answer would be : b. $7,216
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A grader has an initial cost of $220,000 and an estimated useful
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A grader has an initial cost of $220,000 and an estimated useful life of 10 years....
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