11.2 Some special handling devices can be obtained for $20,000. At the end of 5 years,...
11.2 Some special handling devices can be obtained for $20,000. At the end of 5 years, they can be sold for $2000. Computer the depreciation schedule for the devices using the following methods: a) Straight-line depreciation b) MACRS depreciation
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3. O'Leary Engineering Corp. has been depreciating a $50,000 machine for the last 3 years. The asset was just sold for 60% of its first cost. What is the size of the recaptured depreciation or loss at disposal using following depreciation methods. (a) Sum-of-years' digits with N = 8 and S = 2000 (b) Straight line depreciation with N = 8 and S = 2000 (c) MACRS GDS depreciation, classified as a 7-year property.
An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will be kept for 10 years before being sold. The estimated salvage value (SV) for depreciation purposes is to be $25,000. Use this information to solve the following questions: a) Using the straight line (SL) method, the annual depreciation on the equipment is _________________. b) Using the double declining balance (DDB) method, the depreciation charge in year 3 is ______________. c) Using the SL method,...
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An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will be kept for 10 years before being sold. The estimated salvage value (SV) for depreciation purposes is to be $25,000. Use this information to solve the following questions: a) Using the straight line (SL) method, the annual depreciation on the equipment is b) Using the double declining balance (DDB) method, the depreciation charge in year 3...
Problem #3 (a) Using straight-line depreciation, what is the book value after 5 years for an asset costing $100,000 that has a salvage value of 20,000 after 10 years? What is the depreciation charge in the 9th year? (b) Using decline-balance depreciation with d=15%, what is the book value after 4 years for an asset costing $250,000? What is the depreciation charge in the 5th year? (c) What is the depreciation rate using declining-balance for an asset costing $250,000 and...
Problem1: (30 points) Your company purchases equipment for $20,000. The salvage value after 5 years is S5,000 Determine the depreciation schedules using: a) Straight Line Depreciation b) Sum of Years Digits Depreciation
Also find the After Tax Cash Flows(ATCF) and Net
present value(NPV) and Rate of Return (IRR) for each method
11-31 A small used delivery van can be purchased for $20,000. At the end of its useful life (8 years), the van can be sold for $3000. Determine the PW of the depreciation schedule based on 15% interest using: (a) Straight-line depreciation (b) Double declining balance depreciation (c) 100% bonus depreciation (d) MACRS depreciation Year BTCF BTCF Purchase benefits- & salvage...
3. Calculate the depreciation in year 5 for an investment of $10,000, with a salvare value of $2000 and a 10 year life under the following 4 methods: (5 points) Straight Line (5 points) Double declining balance (5 points) Sum of years digits (5 points) MACRS (7 year recovery period)
3. Calculate the depreciation in year 5 for an investment of $10,000, with a salvage value of $2000 and a 10 year life under the following 4 methods: (5 points) Straight Line (5 points) Double declining balance (5 points) Sum of years digits (5 points) MACRS (7 year recovery period)
11-27 The XYZ Block comparing Depreciation Methods XYZ Block Company purchased a new office puter 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 was initially declared and that the machine was expected to last 5 years. (a) Straight-line depreciation (b) Double declining balance depreciation (C)...