Comparing Depreciation Methods 11-25 The XYZ Block Com pany purchased a new office computer and...

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Comparing Depreciation Methods 11-25 The XYZ Block Com pany purchased a new office computer and other depreciable computer hardware for $12,000. During the third year, the computer is declared obsolete and is donated to the local commu- nity college. Using an interest rate of 10%, calculate the PW of the depreciation deductions. Assume that no salvage value machine was expected to last 5 years. was initially declared and that the (a) Straight-line depreciation (b) Sum-of-years'-digits depreciation (c) MACRS depreciation (d) Double declining balance depreciation (e) Which method is preferred for determining the uip- tion on firm's taxes? (f) Which method is preferred for determining the p- firm's value? (g) Is using two accounting methods ethical

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