Self-Study Questions

Questions 1 through 7 use the following situation: XY Computers bought an array processor for doing some high-powered computational fluid dynamics calculations. The array processor has an acquisition cost of $22,500, a 5-year useful life, and an expected salvage value of $500. Use the format shown in Table 14.2 to show depreciation year, depreciation amount, and book value.

1.Show straight-line depreciation.
2.Show 200% declining-balance depreciation.
3.Show 150% declining-balance depreciation.
4.Show 150% declining-balance switching to straight-line depreciation.
5.Show sum-of-the-years-digits depreciation.
6.Show ACRS prescribed method depreciation.
7.Show MACRS depreciation.

Questions 8 through 14 use the following situation: ...

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