A garbage disposal compay purchased a refuse truck on Feb. 2, 2113, at a cost of $72,000' The truck has a useful life of 8 years with an estimated salvage vale of $17,000. The straight line method is used for book purposes. For tax purposes, the truck would be depreciated be MACRS over its five-year class life. Determine the annual depreciation amount to be taken over the useful life of the truck for both book and tax purposes.

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Elin HesselLv2

14 Sep 2018

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1. Restek Chromatography Products and Solutions company purchased new packaging equipment with an estimated useful life of 10 years. Cost of the equipment was $20,000 and the salvage value was estimated to be $3000 at the end of its useful like.

a) (10 pts) For their company financial records, they are using the double declining-balance depreciation method. What is the depreciation amount they would record in their company financial records for the 7^th year of the asset's life?

b) (5 pts) If the company was instead using the straight-line method of depreciation, what would be the depreciation amount they would record in their company financial records for the 7^th year of the asset's life?