What is the devices vb at the end of four years

Reference no: EM13213942

Cisco Systems is purchasing a new bar code scanning device for its service center in San Francisco. The table that follows lists the relevant cost items for this purchase. The operating expenses for the new system are $10,000 per year, and the useful life of the system is expected to be five years. The SV for depreciation purposes is equal to 25% of the hardware cost.
Cost Item Cost
Hardware $160,000
Training $15,000
Installation$15,000
a. What is the BV of the device at the end of year three if the SL depreciation method is used?
b. Suppose that after depreciating the device for two years with SL method, the firm decides to switch to the double declining balance depreciation method for the remainder of the device's life (the remaining three years). What is the device's VB at the end of four years?

Reference no: EM13213942

Questions Cloud

Compute the mass of ethylene glycol : Calculate the mass of ethylene glycol (C2H6O2) that must be added to 1.00 kg of ethanol (C2H5OH) to reduce its vapor pressure by 12.0 torr at 35C. The vapor pressure of pure ethanol at 35C is 1.00x10^2 torr.

Compute the depreciation amount in the third year : An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciation amount in th..

Operating plants-corporate headquarters-sales representative : Sales representative Jones is based in Utah, where the operating plants and corporate headquarters of her employer also are located. She visits customers in Colorado for a day, soliciting orders for the seashells that she sells. The orders are approv..

Explain the final temperature after reaction : Assume that 100.0 mL of 0.200 M of CsOH and 50.0 mL of 0.400 M HCl are mixed in a calorimeter. The solutions start out at 22.50 degrees celcius, and the final temperature after reaction is 24.28 degrees celcius.

What is the devices vb at the end of four years : Cisco Systems is purchasing a new bar code scanning device for its service center in San Francisco. The table that follows lists the relevant cost items for this purchase. The operating expenses for the new system are $10,000 per year, and the use..

Discuss the pros and cons of fixed exchange rate systems : Low-income nations have a dilemma as to whether to fix or float the currency exchange rates. There are many factors that affect their decisions and how effectively they can manage a financial system. Discuss a few of these factors that play into t..

Explain polymerization of a protein is complete : When polymerization of a protein is complete but the protein is still completely linear, what is the highest level of structure that has been completed?

Calculate the aimed profit percentages : Calculate the aimed profit percentages for the three products and under the full absorption costing method, with overhead costs absorbed on the basis of direct labour hours.

Explain what is the volume of vinegar in the mixture : If a certian mixture of olive oil and vinegarhas a total mass of 397.8g and a total volume of 4228 cm^3, what is the volume of oil and what is the volume of vinegar in the mixture?

User Account

All Pages