A tractor for over-the-road hauling is purchased for $80,000.00. It is expected to be of use to the company for 6 years, after whic will be salvaged for $3,200.00. Calculate the depreciation deduction...


A tractor for over-the-road hauling is purchased for $80,000.00. It is expected to be of use to the company for 6 years, after whic<br>will be salvaged for $3,200.00. Calculate the depreciation deduction and the unrecovered investment during each year of the<br>tractors life.<br>a. Use straight-line depreciation. Provide depreciation and book value for year 6.<br>Depreciation for year 6 = $<br>book value for year 6 = $<br>b. Use declining-balance depreciation, with a rate that ensures the book value equals the salvage value. Provide depreciation and<br>book value for year 6.<br>Depreciation for year 6 = $<br>book value for year 6 = $<br>c. Use double declining balance depreciation. Provide depreciation and book value for year 6.<br>Depreciation for year 6 = $<br>book value for year 6 = $<br>d. Use double declining balance, switching to straight-line depreciation. Provide depreciation and book value for year 6.<br>Depreciation for year 6 = $<br>book value for year 6 = $<br>Do all computations to 5 decimal places and round final answers to 2 decimal places. Tolerance is ± 50.<br>

Extracted text: A tractor for over-the-road hauling is purchased for $80,000.00. It is expected to be of use to the company for 6 years, after whic will be salvaged for $3,200.00. Calculate the depreciation deduction and the unrecovered investment during each year of the tractors life. a. Use straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ b. Use declining-balance depreciation, with a rate that ensures the book value equals the salvage value. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ c. Use double declining balance depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ d. Use double declining balance, switching to straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ book value for year 6 = $ Do all computations to 5 decimal places and round final answers to 2 decimal places. Tolerance is ± 50.

Jun 02, 2022
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