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