You buy office furniture the office will be open for 6


You buy office furniture. The office will be open for 6 years, and then you will sell the furniture. The purchase price of the furniture is $40,000. It will contribute to the profitsin the amount of $20,000 per year. The salvage value is $15,000 when sold at the end of its depreciable life. MARR = 4%. Note IRS ADR = 10 years. MARCS is 7 years with 150% DB. Compute the annual depreciation and the Book Value Year K using Straight line, Declining Balance and MACRS.

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Financial Accounting: You buy office furniture the office will be open for 6
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