Homework Answers
A.
Cost basis = cost of purchase + cost of delivery and installation = 265000 + 46000
Cost basis = $311000
B.
Depreciation allowance for year 1 = 311000*14.29% = $44441.9
Depreciation allowance for year 2 = 311000*24.49% = $76163.9
Depreciation allowance for year 3 = 311000*17.49% = $54393.9
Depreciation allowance for year 4 = 311000*12.49% = $38843.9
Depreciation allowance for year 5 = 311000*8.93% = $27772.3
Depreciation allowance for year 6 = 311000*8.92% = $27741.2
Depreciation allowance for year 7 = 311000*8.93% = $27772.3
Depreciation allowance for year 8 = 311000*4.46% = $13870.6
Add Answer to:
The M&M Company purchased a new punch press in 2005 at a cost of $265,000. M&M...
Adams Inc. purchased a new punch press on January 1, 2017. The company paid $900,000 for...
Adams Inc. purchased a new punch press on January 1, 2017. The company paid $900,000 for the equipment, and also paid ABC Transport $37,000 to ship the press to its facility. Once the press arrived, Adams incurred expenditures of $15,000 for installation and $3,500 to test that the equipment was operating properly. The company also estimates that over the equipment's life it will require additional power, which will cause utility costs to increase $80,000. Adams expects that the press will...
A small factory is considering replacing its existing coining press with a newer, more efficient one....
A small factory is considering replacing its existing coining press with a newer, more efficient one. The existing press was purchased five years ago at a cost of $200,000, and it is being depreciated according to a 7-year MACRs depreciation schedule and the first five years of depreciation have been taken (see below for MACRs chart). The CFO estimates that the existing press has 6 years of useful life remaining. The purchase price for the new press is $306,000. The...
HP purchased a new laser printer at the start of 2018. The equipment cost $368,460 and...
HP purchased a new laser printer at the start of 2018. The equipment cost $368,460 and has an estimated life of five years. At the end of this time, the estimated salvage value is $41,400. (a) You have been asked to help prepare the financial information regarding this purchase to be included in the annual financial report to shareholders. Use a straight-line depreciation method and calculate the following values at the end of each year of the equipment’s useful life:...
The Vermont Construction Company purchased a truck on January 1, 2009 at a cost of $35000. The truck has a useful life of eight years with an estimated salvage value of $6000. The straight-line method...
The Vermont Construction Company purchased a truck on January 1, 2009 at a cost of $35000. The truck has a useful life of eight years with an estimated salvage value of $6000. The straight-line method is used for book purposes, for tax purposes the track would be depreciated with the MACRS method over its five-year useful life. Determine the depreciation amount to be taken over the useful life of the having truck for both and tax purposes.
The Darlington Equipment Company purchased a machine 5 years ago at a cost of $100,000. The...
The Darlington Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $10,000 per year. If the machine is not replaced, it can be sold for $10,000 at the end of its useful life. A new machine can be purchased for $160,000, including installation costs. During its 5-year life, it will reduce cash...
please use excel to answer the questions and show all outputs E3) The Erley Equipment Company...
please use excel to answer the questions and show all
outputs
E3) The Erley Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had an expected life of 10 years at the time of purchase, and an expected salvage value of $10,000 at the end of the 10 years. It is being depreciated by the straight line method toward a salvage value of $10,000, or by $9,000 per year. A new machine can be...
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has...
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $175,000. With additional options costing $14,000, the cost basis for depreciation purposes is $189,000. Its MV at the end of six years is estimated as $41,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year three? b. What is the MACRS depreciation in the second year? c. What is the...
roblem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3)...
roblem 8-3 Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $42,000 and an estimated useful life of 5 years. Assume half-year convention for...
Ellison Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for...
Ellison Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differing terms and options from each vendor. The Engineering Department has determined that each vendor's punch press is substantially identical and each has a useful life of 20 years. In addition. Engineering has estimated that required year-end maintenance costs will be $1,000 per year for the first 5 years, $2,000...
5-28 For a new punch press. Company Acharges А $250,000 to deliver and install it. Company...
5-28 For a new punch press. Company Acharges А $250,000 to deliver and install it. Company A has estimated that the machine will have operat- ing and maintenance (O & M) costs of $4000 a year. You estimate an annual benefit of $89,000. Company B charges $205,000 to deliver and install the device. Company B has estimated O & M of the press at $4300 a year. You estimate an annual benefit of $86,000. Both machines will last 5 years...
Adams Inc. purchased a new punch press on January 1, 2017. The company paid $900,000 for the equipment, and also paid ABC Transport $37,000 to ship the press to its facility. Once the press arrived, Adams incurred expenditures of $15,000 for installation and $3,500 to test that the equipment was operating properly. The company also estimates that over the equipment's life it will require additional power, which will cause utility costs to increase $80,000. Adams expects that the press will...
please use excel to answer the questions and show all
outputs
E3) The Erley Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had an expected life of 10 years at the time of purchase, and an expected salvage value of $10,000 at the end of the 10 years. It is being depreciated by the straight line method toward a salvage value of $10,000, or by $9,000 per year. A new machine can be...
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $175,000. With additional options costing $14,000, the cost basis for depreciation purposes is $189,000. Its MV at the end of six years is estimated as $41,000. Assume it will be depreciated under the GDS: a. What is the cumulative depreciation through the end of year three? b. What is the MACRS depreciation in the second year? c. What is the...
Ellison Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differing terms and options from each vendor. The Engineering Department has determined that each vendor's punch press is substantially identical and each has a useful life of 20 years. In addition. Engineering has estimated that required year-end maintenance costs will be $1,000 per year for the first 5 years, $2,000...
5-28 For a new punch press. Company Acharges А $250,000 to deliver and install it. Company A has estimated that the machine will have operat- ing and maintenance (O & M) costs of $4000 a year. You estimate an annual benefit of $89,000. Company B charges $205,000 to deliver and install the device. Company B has estimated O & M of the press at $4300 a year. You estimate an annual benefit of $86,000. Both machines will last 5 years...
Most questions answered within 3 hours.
-
Which statement is always true: The total energy of a closed
system...
A) is always equally...
asked 11 minutes ago -
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 2 hours ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 4 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 4 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 5 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 8 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 8 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 9 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 11 hours ago