Goodson Healthcare purchased a new sonogram imaging unit for $300,000 and a truck body and chassis for an additional $100,000 to make the unit mobile. The unit-truck system will be depreciated as one asset. The functional life is 8 years, and the salvage is estimated to be 10% of the purchase price of the imaging unit regardless of the number of years of service. Use classical straight line deprecia- tion to determine the salvage value, annual depreci- ation, and book value after 4 years of service.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Goodson Healthcare purchased a new sonogram
imaging unit for $300,000 and a truck body and
chassis for an additional $100,000 to make the unit
mobile. The unit-truck system will be depreciated
as one asset. The functional life is 8 years, and the
salvage is estimated to be 10% of the purchase price
of the imaging unit regardless of the number of
years of service. Use classical straight line deprecia-
tion to determine the salvage value, annual depreci-
ation, and book value after 4 years of service.
Transcribed Image Text:Goodson Healthcare purchased a new sonogram imaging unit for $300,000 and a truck body and chassis for an additional $100,000 to make the unit mobile. The unit-truck system will be depreciated as one asset. The functional life is 8 years, and the salvage is estimated to be 10% of the purchase price of the imaging unit regardless of the number of years of service. Use classical straight line deprecia- tion to determine the salvage value, annual depreci- ation, and book value after 4 years of service.
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