Determine the book value for given year

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Reference no: EM132023742

Question: An asset has an initial cost of $60,000, a salvage value of $5,000, and a depreciation life of 6 years.

a) Determine the book value for year 3 using sum-of-the-years-digits depreciation.

b) Determine the depreciation for year 3 using double declining balance depreciation.

c) Determine the equivalent annual capital recovery plus a 12% return for year 3, assuming declining balance depreciation.

Information related to above question is enclosed below:

Attachment:- EquationSheetforENGR397011292017a.rar

Reference no: EM132023742

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