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Question : A coil winding and unwinding machine that costs $32,000 has a life of 9 years with : 2141755

**SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.**

**Answer the question.**

1) A coil winding and unwinding machine that costs $32,000 has a life of 9 years with a $4000 salvage value. Use classical straight line depreciation to determine the book value after 7 years.

2) An inspecting and profiling web controller that costs $40,000 has a life of 8 years with a $5000 salvage value. The estimated annual operating and maintenance cost is $3700 per year. Use classical straight line depreciation to determine the annual depreciation at the end of year 5.

3) A viscosity sensing instrument costs $46,000 and has a $5500 salvage value with a 7-year recovery period. The estimated annual operating cost is $3000 per year. Use classical straight line depreciation to calculate the cumulative depreciation and a book value at the end of year 6.

4) A $22,000 flow measurement instrument was installed and depreciated for 9 years and was sold for $4500. If the double declining balance method of depreciation is used, determine the difference between the book value and the market value at the end of year 9.

5) Aggie Research Laboratory purchased a new High Performance Liquid Chromatography (HPLC) unit for $39,000. The unit has a functional life of 5 years and a salvage value of 10% of the purchased price. Using declining balance depreciation at a rate of 1.5 times the straight line rate, determine the annual depreciation at the end of year 2.

6) A piece of liquid handling equipment that costs $10,000 has a $3000 salvage value. Using MACRS depreciation with a 3-year recovery period, calculate the accumulated annual depreciation at the end of year 3.

7) A petroleum refining and recovery service company, Cowboy Enterprises, purchased $13,000 worth of equipment for reconditioning fuels in its storage tanks. The equipment has a functional life of 14 years and a salvage value of 5% of the purchased price. Use MACRS depreciation with a 10-year recovery period to determine the book value after 4 years.

8) An uninterruptible power system used in a small production facility at Acme Manufacturing has a basis of $56,000 and is expected to have $5750 salvage value after 125,000 hours of use. Calculate the depreciation rate per hour of use and the book value after 77,000 hours of operation.

9) For depreciation purposes, a 150% declining balance depreciation is used for a material handling lift truck with a cost basis of $23,000 and a salvage value of $6250 at the end of its useful life of 5 years. If the MACRS depreciation method with a 3-year recovery period is used for tax purposes, determine the difference between the annual depreciation after 2 years calculated from both depreciation methods.