Decided to purchase new logging equipment

Reference no: EM13689490

A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of its old equipment. The old equipment has a BV of $10,000 at the time of the trade-in. The new equipment will be kept for 10 years before being sold. Its estimated SV at the time is expected to be $5,000. Using the MACRS (GDS recovery period), if the equipment is sold in year five, the BV at the end of year five is equal to:

Reference no: EM13689490

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