A drug company has just purchased a capsulating machine for $2,000,000. The plant engineer estimates that the machine has a useful life of five years and a salvage value of $25,000 at the end of its useful life. Compute the depreciation schedule for the machine by each of the following depreciation method:
A. Straight line method of depreciation
B. Sum of the years digits method of depreciation
C. Declining balance method of depreciation
D. Double declining balance method of depreciation

Some special handling devices can be obtained for 12,000. At the end of 4 years, they can be sold for 600. Compute the depreciation schedule for the devices using the following methods:

A) Straight-line depreciation

B) Sum-of-years'-digits depreciation

C) Double declining balance depreciation.

D) MACRS depreciation

1. Restek Chromatography Products and Solutions company purchased new packaging equipment with an estimated useful life of 10 years. Cost of the equipment was $20,000 and the salvage value was estimated to be $3000 at the end of its useful like.

a) (10 pts) For their company financial records, they are using the double declining-balance depreciation method. What is the depreciation amount they would record in their company financial records for the 7^th year of the asset's life?

b) (5 pts) If the company was instead using the straight-line method of depreciation, what would be the depreciation amount they would record in their company financial records for the 7^th year of the asset's life?

A company buys new office furniture for $75,000 with a 7-year depreciable life and a $5,000 Salvage Value. Use the following depreciation methods to determine the depreciation schedule (dt) and the office furniture's book value at the end of year 5. It is not being sold in year 5.

a. Straight Line

b. Sum-of-Years'- Digits (SOYD-Method)

c. Double declining balance (DDB-Method), assume any remaining depreciation is claimed in the last year.

d. MACRS depreciation, where the Salvage Value is zero.

The Company described in problem 1 is selling the office furniture after 3 years for $40,000.

a) Determine the MACRS depreciation schedule for 3 years of ownership

b) Determine any extra taxable income (recaptured depreciation), if any, on the sale of the furniture.