What is the book value at the end of the 3rd year?

Englehard purchases a slurry-based separator for the mining of clay that costs $700000 and has an e Show more Englehard purchases a slurry-based separator for the mining of clay that costs $700000 and has an estimated useful life of 10 years a MACRS-GDS property class of 7 years and an estimated salvage value after 10 years of $75000. It was financed using a $200000 down payment and a loan of $500000 over a period of 5 years with interest at 10%. Loan payments are made in equal annual amounts (principal plus interest) over the 5 years. a) what is the amount of the MACRS-GDS depreciation taken in the 3rd year? b) What is the book value at the end of the 3rd year? c) Returning to the original situaton what is the amount of the MACRS-GDS depreciation taken in the 3rd yera if the separator is also sold during the 3rd year? Show less

QUICK QUOTE

Approximately 250 words