Homework Answers
| year | MACRS % | Amount of Dep under MACRs | Amount of Dep. Under Straight line | Difference | Tax Effect | |
| 1 | 0.3333 | 309969 | 310000 | |||
| 2 | 0.4444 | 413292 | 310000 | 103292 | 21691 | (103292*21%) |
| 3 | 0.1482 | 137826 | 310000 | |||
| 4 | 0.0741 | 68913 |
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5. A certain asset was purchased at a cost of $930,000 and is in the 3...
Sheffield Corporation purchased an asset at a cost of $58,750 on March 1, 2020. The asset...
Sheffield Corporation purchased an asset at a cost of $58,750 on March 1, 2020. The asset has a useful life of 8 years and a salvage value of $4,700. For tax purposes, the MACRS class life is 5 years. MACRS Depreciation Rates by Class of Property Recovery Year 3-year (200% DB) 5-year (200% DB) 7-year (200% DB) 10-year (200% DB) 15-year (150% DB) 20-year (150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.29 18.00 9.50 7.219 ...
Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2020. The asset...
Francis Corporation purchased an asset at a cost of $50,000 on
March 1, 2020. The asset has a useful life of 8 years and a salvage
value of $4,000. For tax purposes, the MACRS class life is 5
years.
MACRS Depreciation Rates by Class of
Property
Recovery
Year
3-year
(200% DB)
5-year
(200% DB)
7-year
(200% DB)
10-year
(200% DB)
15-year
(150% DB)
20-year
(150% DB)
1
33.33
20.00
14.29
10.00
5.00
3.750
2
44.45
32.00
24.29
18.00
9.50
7.219 ...
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland T...
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years. (a) Using MACRS depreciation, what is the book value after 2 years? (b) Using MACRS depreciation, what is the book value after...
i need e f g 11-51 Sarah Jarala recently purchased an asset that she intends to...
i need e f g
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years. (a) Using MACRS depreciation, what is the book value after 2 years? (b) Using MACRS depreciation, what...
Metlock Corporation purchased an asset at a cost of $50,000 on March 1, 2020. The asset has a useful life of 8 years and...
Metlock Corporation purchased an asset at a cost of $50,000 on March 1, 2020. The asset has a useful life of 8 years and a salvage value of $4,000. For tax purposes, the MACRS class life is 5 years. MACRS Depreciation Rates by Class of Property Recovery Year 3-year (200% DB) 5-year (200% DB) 7-year (200% DB) 10-year (200% DB) 15-year (150% DB) 20-year (150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.29 18.00 9.50 7.219 ...
On January 3, 2018, Speedy Delivery Service purchased a truck at a cost of $67,000. Before...
On January 3, 2018, Speedy Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, Speedy spent $3,000 painting it, $1,200 replacing tires, and $3,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $5,100. The truck's annual mileage is expected to be 20,000 miles in each of the first four years and 12,800 miles in the fifth year-92,800 miles in total. In deciding which...
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...
A piece of newly purchased industrial equipment costs $978,000 and is classified as seven-year property under...
A piece of newly purchased industrial equipment costs $978,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7 Calculate the annual depreciation allowances and end-of-the-vear book values for this equipment (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year Beginning Book Value Depreciation Ending book Value د ta یه ن in in ه...
Use the following information to complete the deprecation schedule below using the Straight Line method of...
Use the following information to complete the deprecation schedule below using the Straight Line method of depreciation: An asset was purchased on Jan. 1 2017 at a cost of $60,000. The asset has a salvage value of $4,000 and an estimated life of 8 years. wwwwww VAR Year Annual Depreciation Book Value 60,000 on AWN
Problem 1 The latest manufacturing equipment is purchased at a cost of $800,000. As a result,...
Problem 1 The latest manufacturing equipment is purchased at a cost of $800,000. As a result, annual cash revenues are expected to increase by $345,000; annual cash expenses are expected to increase by $162,000; straight-line depreciation is used; the asset has a seven-year life; the salvage value is $100,000. Assume the company is in the new 21% corporate tax bracket. Determine the accounting rate of return? (round to the nearest %) Determine the payback period? Determine the NPV assuming a...
Francis Corporation purchased an asset at a cost of $50,000 on
March 1, 2020. The asset has a useful life of 8 years and a salvage
value of $4,000. For tax purposes, the MACRS class life is 5
years.
MACRS Depreciation Rates by Class of
Property
Recovery
Year
3-year
(200% DB)
5-year
(200% DB)
7-year
(200% DB)
10-year
(200% DB)
15-year
(150% DB)
20-year
(150% DB)
1
33.33
20.00
14.29
10.00
5.00
3.750
2
44.45
32.00
24.29
18.00
9.50
7.219 ...
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years. (a) Using MACRS depreciation, what is the book value after 2 years? (b) Using MACRS depreciation, what is the book value after...
i need e f g
11-51 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years. (a) Using MACRS depreciation, what is the book value after 2 years? (b) Using MACRS depreciation, what...
On January 3, 2018, Speedy Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, Speedy spent $3,000 painting it, $1,200 replacing tires, and $3,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $5,100. The truck's annual mileage is expected to be 20,000 miles in each of the first four years and 12,800 miles in the fifth year-92,800 miles in total. In deciding which...
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...
A piece of newly purchased industrial equipment costs $978,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7 Calculate the annual depreciation allowances and end-of-the-vear book values for this equipment (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year Beginning Book Value Depreciation Ending book Value د ta یه ن in in ه...
Use the following information to complete the deprecation schedule below using the Straight Line method of depreciation: An asset was purchased on Jan. 1 2017 at a cost of $60,000. The asset has a salvage value of $4,000 and an estimated life of 8 years. wwwwww VAR Year Annual Depreciation Book Value 60,000 on AWN
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