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Your answer is partially correct

Economics Nov 25, 2020

Your answer is partially correct. A tractor for over-the-road hauling is purchased for $85,000.00. It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,800.00. 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 = $ 13533.33 book value for year 6 = $ 3800.00 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 = $ 5042.72 book value for year 6 = $ 15,128.17 c. Use double declining balance depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ 3731.14 book value for year 6 = $ 7462.28 d. Use double declining balance, switching to straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 = $ 7393.42 book value for year 6 = $ 2901.65

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