Your Company has just purchased a new machine

jagguarpaw January 19, 2017 0 Comments

Question: Your Company has just purchased a new machine that…

Your company has just purchased a new machine that costs $10,000. The machine has an expected life of 10 years and salvage value of $700. The depreciation life is 10 year. Compare the present values of the depreciation that would be obtained, using SL (straight-line method), SOYD (sum of the year’s digits), DDB (double declining balance), or a combination of two methods. Ignore ITC and Section 179.