Problem: Price Index EIP
An asset is acquired at a cost of $10,000 with a five-year life and no anticipated salvage value. Straight-line depreciation is considered appropriate. The asset was acquired on January 2, 2000. Price indexes for the five years are:
Each member of the group should be responsible for preparing data for a given year.
When finished group members should answer the questions below together. 2000 2001 2002 2003 2004 Fixed asset index 100 95 108 120 125 General price index 100 110 115 112 125.
Compute the current value depreciation for each year. What is the realized real holding gain for the years 2001 - 2004? What would the holding gain be under EIP for the years 2001 - 2004?
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.