The ________ a capital asset is NOT part of the MACRS and is ignored for depreciation...
The ________ a capital asset is NOT part of the MACRS and is ignored for depreciation expense.
salvage value of
straight-line value of
inventory from
dividends paid from
Homework Answers
The answer is
salvage value of
MACRS depreciation method does not consider salvage value of the asset. It specifies % cost to be charged as depreciation over the years and it does not consider salvage value
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The ________ a capital asset is NOT part of the MACRS and is
ignored for depreciation...
Calculate the annual Straight Line depreciation charge for a asset with a cost basis of $12,000,...
Calculate the annual Straight Line depreciation charge for a asset with a cost basis of $12,000, a depreciable life of 10 years, and a Salvage value of $2,000. If you believe the useful life of an asset will be 10 years, the Bonus Depreciation method allows for 100% depreciation in year 1, and the MACRS method indicates the depreciable life is 7 years, what is the useful life you should use in capital recovery economic analysis? SHOW ALL CALCULATIONS
Problem1 Part 1: An asset having a six-year useful life and a salvage value of $3,000...
Problem1 Part 1: An asset having a six-year useful life and a salvage value of $3,000 was acquired for $21,000 cash on January 1. The company estimates the asset will produce 60,000 units over its useful life. During the year the asset was used to produce 14,020 units. Using straight-line depreciation, what will be the depreciation expense for year 1 of this asset? a $4,206 b.$4,907 c. $3,000 d $3,500 Part 2: If a perpetual inventory system is in use...
Consider the following MACRS Table for a 5-year asset. If an asset is purchased for $100,000;...
Consider the following MACRS Table for a 5-year asset. If an asset is purchased for $100,000; with a shipping and istallation cost of $10,000 and an expected salvage value of $20,000; what is the depreciation expense in the second year? I need to know the steps with a BA ll plus calculator if needed. Year Exp. Ratio 1 20.00 2 32.00 3 19.20 4 11.52 5 11.52 6 5.76 $ 35,200.00 $ 32,000.00 $ 28,800.00 $ 25,600.00
12. This company uses the straight-line depreciation method for this capital asset. The following information applies...
12. This company uses the straight-line depreciation method for this capital asset. The following information applies to a capital asset of a company: Year Ending 2018 2017 2016 Capital asset €2,500 €2,500 €2.500 Accumulated depreciation 375 250 125 Net book value 2,125 2.250 2,375 7 At the end of 2018, the expected remaining life of the capital asset, in years, is: _
If the salvage value was decreased for Asset 1002, what affect would there be on depreciation...
If the salvage value was decreased for Asset 1002, what affect would there be on depreciation expense? What affect on the Accumulated Depreciation Small Builders, Inc. Depreciation Schedule Asset # 1001 IF=(condition, value if true, value if false) - Cell G12 Asset Display Cases IF=[condition, value if true, value if false(condition, value if true, value if false)] - Cells G13-G16 Date acquired 1/1/2015 X should switch Cost $ 15,000.00 - do not switch Depreciation method DDB Salvage value Estimated useful...
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....
Year two in each of the MACRS depreciation schedules: O is the only, year in which...
Year two in each of the MACRS depreciation schedules: O is the only, year in which MACRS depreciation is greater than straight line depreciation O is the year in which taxes are more under MAORS than under straight line. o is the point at which depreciation becomes unimportant to a company O is superior to straight line because of the time value of money o None of the above is true.
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...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has a...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,200,000 and will be sold for $1,860,000 at the end of the project. If the tax rate is 40 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Aftertax salvage value $
Problem1 Part 1: An asset having a six-year useful life and a salvage value of $3,000 was acquired for $21,000 cash on January 1. The company estimates the asset will produce 60,000 units over its useful life. During the year the asset was used to produce 14,020 units. Using straight-line depreciation, what will be the depreciation expense for year 1 of this asset? a $4,206 b.$4,907 c. $3,000 d $3,500 Part 2: If a perpetual inventory system is in use...
12. This company uses the straight-line depreciation method for this capital asset. The following information applies to a capital asset of a company: Year Ending 2018 2017 2016 Capital asset €2,500 €2,500 €2.500 Accumulated depreciation 375 250 125 Net book value 2,125 2.250 2,375 7 At the end of 2018, the expected remaining life of the capital asset, in years, is: _
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....
Year two in each of the MACRS depreciation schedules: O is the only, year in which MACRS depreciation is greater than straight line depreciation O is the year in which taxes are more under MAORS than under straight line. o is the point at which depreciation becomes unimportant to a company O is superior to straight line because of the time value of money o None of the above is true.
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...
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