Conference Session

Engineering Economy Division Technical Session 1

Collection

2019 ASEE Annual Conference & Exposition

Authors

Ted Eschenbach P.E., TGE Consulting; Jerome P. Lavelle, North Carolina State University; Neal A. Lewis, Fairfield University

Tagged Divisions

Engineering Economy

. Those texts completed before the TCJA arelikely to be revised in their next edition. It is hoped that this paper might influence the coveragein those future editions.ResultsDepreciation methods for valuation and taxesAccording to the U.S. Generally Accepted Accounting Principles (GAAP), there are only fourdepreciation methods that are permitted for asset valuation: straight-line, declining balance, unitsof production, and sum-of-years’-digits. Straight-line is the most commonly used. Decliningbalance may be chosen because a constant rate of decline in the assets’ book value may moreaccurately reflect true market values. Declining balance with a switch to straight-line is part ofthe basis for MACRS, and is covered in some textbooks.Beginning in

Conference Session

Engineering Economy Division Technical Session 1

Collection

2019 ASEE Annual Conference & Exposition

Authors

Raymond L. Smith III, East Carolina University; Henry D. Lester, University of South Alabama

Tagged Divisions

Engineering Economy

characteristic and thus subject to penalty (0, -1, -2). Therational is that the presence of a simple example can be helpful to reflect the concept, however,multiple permutations indicate lack of understanding fundamental concepts. Students notcreating a cheat-sheet or failing to bring it for use in the exam received a score of zero. Tocompute a representative composite an additive scoring approach was used. Using this criterioneach cheat-sheet was evaluated by two reviewers.Figure 1 provides an illustration of two different authorized cheat-sheet examples used in amidterm examination. The cheat-sheet appearing on the left received the scores: density 2,organization 2, readability 3, formulas 0, and examples -1. This received a total score of 6