372 Chapter 8 Mathematics of Pricing
c. Determine the depreciation amount for the remainder of the computers’ useful life by completing the table below:YearDepreciation
AmountDepreciated Value at
End of Year
2007
2008
2009
2010
2011
2012E. Grab Bag
- Zmarek Associates purchased laboratory equipment for $450,000. Determine the depreciated value of this equipment
after 4 years using:
a. 10.5% annual depreciation
b. Straight-line depreciation with a $25,000 salvage value and a 9-year useful life- Boldhurst Conservatory purchased new pianos for $1.2 million. The useful life of the pianos is 20 years and the salvage
value is $95,000. Using straight-line depreciation, determine the depreciated value of the pianos after 7 years. - Zarofi re Systems bought new computers for its offi ces for $250,000. Using 5-year MACRS depreciation, determine the
total depreciation the company will take for these computers in the fi rst 3 years and their depreciated value after 3 years. - Stonehurst Trucking bought a new truck for $111,925. Find the depreciated value of this truck after 5 years, using:
a. 12% annual depreciation
b. Straight-line depreciation with a $7,300 salvage value and a 10-year useful life- Ralydex Pharmacorp bought offi ce equipment for a total of $162,500. The useful life is 7 years, and the salvage value
is $3,500. The equipment was put in use 214 days before the end of 2007. Determine the amount of straight-line
depreciation that the company could claim for this equipment for 2007, 2008, and 2009. - Segulon Corp. bought new soundproofi ng equipment for its audio testing labs at a cost of $319,500. The useful life is
12 years and there is no salvage value. Determine the per-year straight-line depreciation rate. - Suppose that a piece of offi ce equipment is purchased for $7,200. The useful life is 5 years and the salvage value is
$1,400. Create a table showing the depreciated value of the offi ce equipment after each year of its use.