Calculate the yearly depreciation allowance and book values

Reference no: EM132171507

Question - A company purchased petroleum drilling equipment. The following table summarizes the cost data for the new system:

Petroleum drilling equipment

Initial cost $1,250,000

Annual operating cost 150,000

Benefits /Year 200,000

Salvage value at the end of its depreciable life 250,000

Use MACRS GDS method to calculate the yearly depreciation allowance and book values. MARR is 18%.

Reference no: EM132171507

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