HW Problem 9.1-Water Company purchased a new pump for $147,000 on 1/1X. expected

Question

HW Problem 9.1-Water Company purchased a new pump for $147,000 on 1/1X. expected life ofyears or 2,000,000 gallons, and an expected salvage value of sg balance, and uo00 in depreciation over the life of the new pump using the straight-line, double-declining production method 20X3, and 560,000 in 20X4, Be sure to show your work. Whe vou re done, enter in the annual depreciation into the following table. on 1/1/XI. The pump has an 7.000. Calculate the annual value of $ its o and uni .Assume that 525,000 gallons 400,000 in 0ouYear Straight-Line Units DDB Total

Explanation / Answer

Calculate depreciation :

Year Straight line Units of production DDB 1 (147000-7000/4) = 35000 (147000-7000/2000000*525000) = 36750 73500 2 35000 42000 36750 3 35000 28000 18375 4 35000 33250 11375 Total 140000 140000 140000

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