DEVRY ACCT 216 Week 5 Homework B
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<strong>DEVRY</strong> <strong>ACCT</strong> <strong>216</strong> <strong>Week</strong> 5 <strong>Homework</strong> B<br />
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<strong>216</strong>/acct-<strong>216</strong>-week-5-homework-b<br />
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Suppose the Atlanta Falcons purchased a new set of goal posts for $20,000 each. The<br />
Falcons expect the goal posts to have a useful life of five years and a salvage value of<br />
$1,000 each when they sell them to a local high school.<br />
Required:<br />
Compute the first years depreciation using the following methods:<br />
2.Suppose the team depreciates the asset based on number of goals scored. The team<br />
anticipates goals to be 40 in the first year, 46 in the second year, 38 in the third, 50 in<br />
the fourth when they win the Super Bowl, and 45 in the fifth year. Compute their first<br />
year depreciation using the units-of-production method.<br />
3.Which method do you think is the most representative of accurate depreciation of<br />
the goal posts?