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An asset was purchased three years ago for $130,000. It falls into the five-year category for...
An asset was purchased three years ago for $100,000. It falls into the five-year category for...
An asset was purchased three years ago for $100,000. It falls
into the five-year category for MACRS depreciation. The firm is in
a 25 percent tax bracket. Use Table 12–12.
a. Compute the tax loss on the sale and the
related tax benefit if the asset is sold now for $13,060.
(Input all amounts as positive values. Do not round
intermediate calculations and round your answers to whole
dollars.)
b. Compute the gain and related tax on the sale if...
An asset was purchased three years ago for $105,000. It falls into the five-year category for...
An asset was purchased three years ago for $105,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12-12 a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $13,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.) Tax loss on the sale Tax benefit b. Compute the gain...
Telstar Communications is going to purchase an asset for $760,000 that will produce $370,000 per year...
Telstar Communications is going to purchase an asset for $760,000 that will produce $370,000 per year for the next four years in earnings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 12-12. (This represents four years of depreciation based on the half-year convention.) The firm is in a 25 percent tax bracket. Fill in the schedule below for the next four years. Year 1 Year 2 Year 3 Year 4 Earnings...
The summit petroleum Corporation will purchase an asset that qualifies for three year MACRS depreciation. The...
The
summit petroleum Corporation will purchase an asset that qualifies
for three year MACRS depreciation. The cost is $430,000 in the ass
that will provide the following stream of earnings before
depreciation and taxes for the next four years:
Year 1: $200,000
Year 2: 245000
Year 3: 84,000
Year 4: 76,000
The firm is in a 40% tax bracket and has a cost of capital of
12%.
A. Calculate the net present value. Use the formula and
financial calculator methods....
Problem 12-26 MACRS depreciation categories (LO12-4) 54 Assume $73,000 is going to be invested in each...
Problem 12-26 MACRS depreciation categories (LO12-4) 54 Assume $73,000 is going to be invested in each of the following assets. Using Table 12-11 and Table 12-12, indicate the dollar amount of the first year's depreciation. points First Year's Depreciation eBook a. Office furniture b. Automobile c. Electric and gas utility property d. Sewage treatment plant Hint Print References Exam 3 - Chapters 9-13 table_12-11.jpg 561x473 pixels Table 12-11 Categories for depreciation write-off Class 3-year MACRS All property with ADR midpoints...
Assume $75,000 is going to be invested in each of the following assets. Using Table 12-11 and Table 12-12. Indica...
Assume $75,000 is going to be invested in each of the following assets. Using Table 12-11 and Table 12-12. Indicate the dollar amount of the first year's depreciation. First Year's Depreciation a. Office furniture b. Automobile c. Electric and gas utility property d. Sewage treatment plant Table 12-11 Categories for depreciation write-off Class 3-year MACRS 5-year MACRS 7-year MACRS 10-year MACRS 15-year MACRS All property with ADR midpoints of four years or less. Autos and light trucks are excluded from...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $72,000. The equipment...
Hercules Exercise Equipment Co. purchased a computerized
measuring device two years ago for $72,000. The equipment falls
into the five-year category for MACRS depreciation and can
currently be sold for $31,800. A new piece of equipment will cost
$200,000. It also falls into the five-year category for MACRS
depreciation. Assume the new equipment would provide the following
stream of added cost savings for the next six years. Use Table
12–12. Use Appendix B for an approximate answer but calculate your...
An asset was purchased three years ago for $155,000. It falls into the five-year category for...
An asset was purchased three years ago for $155,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12–12. a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $18,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.) Tax loss on sale? Tax benefit? b. Compute the gain and...
Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost...
Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $300,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Use Table 12-12 Use Appendix for an approximate answer but calculate your final answer using the formula and financial calculator methods. Earnings before Depreciation Year 1 $ 82.000 Year 2 110,000 Year 3 80,000 Year 4 51,000 Year 5 45,000 Year 6...
The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The...
The Spartan Technology Company has a proposed contract with the
Digital Systems Company of Michigan. The initial investment in land
and equipment will be $370,000. Of this amount, $250,000 is subject
to five-year MACRS depreciation. The balance is in nondepreciable
property. The contract covers six years; at the end of six years,
the nondepreciable assets will be sold for $120,000. The
depreciated assets will have zero resale value. Use Table 12-12.
Use Appendix B for an approximate answer but calculate...
An asset was purchased three years ago for $100,000. It falls
into the five-year category for MACRS depreciation. The firm is in
a 25 percent tax bracket. Use Table 12–12.
a. Compute the tax loss on the sale and the
related tax benefit if the asset is sold now for $13,060.
(Input all amounts as positive values. Do not round
intermediate calculations and round your answers to whole
dollars.)
b. Compute the gain and related tax on the sale if...
An asset was purchased three years ago for $105,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12-12 a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $13,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.) Tax loss on the sale Tax benefit b. Compute the gain...
Telstar Communications is going to purchase an asset for $760,000 that will produce $370,000 per year for the next four years in earnings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 12-12. (This represents four years of depreciation based on the half-year convention.) The firm is in a 25 percent tax bracket. Fill in the schedule below for the next four years. Year 1 Year 2 Year 3 Year 4 Earnings...
The
summit petroleum Corporation will purchase an asset that qualifies
for three year MACRS depreciation. The cost is $430,000 in the ass
that will provide the following stream of earnings before
depreciation and taxes for the next four years:
Year 1: $200,000
Year 2: 245000
Year 3: 84,000
Year 4: 76,000
The firm is in a 40% tax bracket and has a cost of capital of
12%.
A. Calculate the net present value. Use the formula and
financial calculator methods....
Problem 12-26 MACRS depreciation categories (LO12-4) 54 Assume $73,000 is going to be invested in each of the following assets. Using Table 12-11 and Table 12-12, indicate the dollar amount of the first year's depreciation. points First Year's Depreciation eBook a. Office furniture b. Automobile c. Electric and gas utility property d. Sewage treatment plant Hint Print References Exam 3 - Chapters 9-13 table_12-11.jpg 561x473 pixels Table 12-11 Categories for depreciation write-off Class 3-year MACRS All property with ADR midpoints...
Assume $75,000 is going to be invested in each of the following assets. Using Table 12-11 and Table 12-12. Indicate the dollar amount of the first year's depreciation. First Year's Depreciation a. Office furniture b. Automobile c. Electric and gas utility property d. Sewage treatment plant Table 12-11 Categories for depreciation write-off Class 3-year MACRS 5-year MACRS 7-year MACRS 10-year MACRS 15-year MACRS All property with ADR midpoints of four years or less. Autos and light trucks are excluded from...
Hercules Exercise Equipment Co. purchased a computerized
measuring device two years ago for $72,000. The equipment falls
into the five-year category for MACRS depreciation and can
currently be sold for $31,800. A new piece of equipment will cost
$200,000. It also falls into the five-year category for MACRS
depreciation. Assume the new equipment would provide the following
stream of added cost savings for the next six years. Use Table
12–12. Use Appendix B for an approximate answer but calculate your...
Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $300,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Use Table 12-12 Use Appendix for an approximate answer but calculate your final answer using the formula and financial calculator methods. Earnings before Depreciation Year 1 $ 82.000 Year 2 110,000 Year 3 80,000 Year 4 51,000 Year 5 45,000 Year 6...
The Spartan Technology Company has a proposed contract with the
Digital Systems Company of Michigan. The initial investment in land
and equipment will be $370,000. Of this amount, $250,000 is subject
to five-year MACRS depreciation. The balance is in nondepreciable
property. The contract covers six years; at the end of six years,
the nondepreciable assets will be sold for $120,000. The
depreciated assets will have zero resale value. Use Table 12-12.
Use Appendix B for an approximate answer but calculate...
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