What is the correct firing sequence for an in-line, six cylinder diesel engine?
A. 1 - 5 - 3 - 6 - 2 - 4
B. 1 - 2 - 3 - 4 - 5 - 6
C. 6 - 5 - 4 - 3 - 2 - 1
D. 1 - 6 - 5 - 2 - 3 - 4
Answer: A
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What will be an ideal response?The manager of a plant that manufactures stepper drives knew that MACRS and DDB were both accelerated depreciation methods, but out of curiosity, he wanted to know which one would provide the faster write-off in the first 3 years for equipment that has a first cost of $300,000, a 5-year life, and a $60,000 salvage value. (a) Use hand calculations to determine which method yields the lower book value and by how much. (b) Develop the complete depreciation schedules on a spreadsheet and use them to answer the questions above. (c) Using your spreadsheet results, explain what happened to the DDB depreciation amounts for years 4 and 5.
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