Cyber Manufacturing purchased a complete video borescope system for applications that require work in places where eyes cannot see. The purchase price was $18,000, shipping and delivery was $300, installation cost was $1200, tax recovery period was 7 years, estimated useful life was 10 years, salvage value was nil, and annual operating cost was $45,000 per year. For tax depreciation purposes, what are the values of B, S, and n that should be used in depreciating the asset?
What will be an ideal response?
B = 18,000 + 300 + 1200 = $19,500
S = 0
n = 7 years
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