Homework Answers
1)
given cost = $35000, Salvage value = $12500, Life = 6 years
Straight Line Method Of Depreciation:
depreciation = cost-salvage value/life of the asset
= $35000-$12500/6
= $3750
Depreciation will be same in all 6 years so depreciation for 5th year is $3750
Book value at beginning of 5th year = $35000-($3750*4) = $20000
Book value at the end of 5th year = $35000-($3750*5) = $16250
2) Given cost = $98000, Salvage value = $12500, useful life=6 yrs
(a) Straight Line method:
depreciation = $98000-$12500/6 = $14250
depreciation rate = $14250/$85500*100 = 16.67%
Book value at end of year 6 = $98000-($14250*6) = $12500
(b) Declining Balance Depreciation method:
depreciation rate = 150% of straight line rate
= 150%*16.67 = 25%
depreciation for year 6 = $98000*75%*75%*75%*75%*75%*25%
= $5813.75
book value at end of year 6 = $98000*0.75*0.75*0.75*0.75*0.75*0.75 = $17441.89
(c) double declining Method:
depreciation rate= straight line rate*2 = 16.67*2 = 33.33%
value at beginning of year 6 = $98000*66.67%*66.67%*66.67%*66.67%*66.67% = $12908.57
depreciation for year 6 = $12908.57*33.33%
= $4302.42
book value = $12908.57-$4302.42 = $8606.1414
Add Answer to:
enginering economics
Please provide your response to the nearest integer with no comma or $ sign....
Question 2 (40 points) Please provide your response to the nearest integer with no comma or...
Question 2 (40 points) Please provide your response to the nearest integer with no comma or $ sign. A tractor for over-the-road hauling is purchased for $98,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,000. Calculate the depreciation deduction and the the book value during each year of the tractors life. Use straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 =...
A high-precision programmable router for shaping furniture components (manufacturing equipment) is purchased by Henredon for $240,000....
A high-precision programmable router for shaping furniture components (manufacturing equipment) is purchased by Henredon for $240,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances. a. What is the MACRS-GDS property class? (format example: 3 year) Calculate the depreciation deduction using MACRS-GDS allowances for year 5 = $. Please provide your response to the nearest integer with no comma or $ sign. Calculate the book value using MACRS-GDS allowances...
Question 3 (40 points) A high-precision programmable router for shaping furniture components (manufacturing equipment) is purchased...
Question 3 (40 points) A high-precision programmable router for shaping furniture components (manufacturing equipment) is purchased by Henredon for $240,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances. a. What is the MACRS-GDS property class? (format example: 3 year) Calculate the depreciation deduction using MACRS-GDS allowances for year 5 = $. Please provide your response to the nearest integer with no comma or $ sign. Calculate the book...
Question 1 (40 points) A high-precision programmable router for shaping furniture components is p...
Question 1 (40 points) A high-precision programmable router for shaping furniture components is purchased by Henredon for $200,000. It is expected to last 12 years. Calculate the depre ciation deduction and book value for each year using MACRS-GDS all owances a. what is the MACRS-GDS propry class? (format example: 3 year) Calculate the depre ciation deduction using MACRS-GDS all owances for year 5 - Calculate the book value using MACRS-GDS allowances for year 5S Assume the asset is sold during...
Please explain each step with number and logic. A tractor for over-the-road hauling is purchased for...
Please explain each step with number and
logic.
A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Calculate the depreciation deduction and the unrecovered investment during each year of the tractor's life using MACRS-GDS allowances. a. What is the MACRS-GDS property class? ANSWER b. Assume the tractor is used for the full 6 years ANSWER C. Assume the tractor...
A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that...
A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that the useful (class) life of the system is seven years. The expected market (salvage) value is $450 at the end of year seven a. Use the straight line method to calculate depreciation in year three. b. Use the 200% declining balance method to calculate the cumulative depreciation through year four. c. Use the MACRS method to calculate the cumulative depreciation through year five. d....
Please explain in detail. Material-handling equipment used in the manufacture of grain products (MACRS-GDS 10-year property)...
Please explain in detail.
Material-handling equipment used in the manufacture of grain products (MACRS-GDS 10-year property) is purchased and installed for $180,000. It is placed in service in the middle of the tax year. If it is removed just before the end of the tax year approximately 4.5 years from the date placed in service, determine the depreciation deduction during each of the tax years involved using MACRS-GDS allowances.
Exercise 12-29 Value of Accelerated Depreciation: Sum-of-Years'-Digits (SYD) and Double Declining. Balance (DDB) Methods (LO 12-3)...
Exercise 12-29 Value of Accelerated Depreciation: Sum-of-Years'-Digits (SYD) and Double Declining. Balance (DDB) Methods (LO 12-3) Freedom Corporation acquired a fixed asset for $100,000. Its estimated life at time of purchase was 4 years, with no estimated salvage value. Assume a discount rate of 8% and an income tax rate of 40%. (Use Exhibit 124. Appendix C. TABLE 1 and Appendix C. TABLE 2) Required: 1. What is the incremental present value of the tax benefits resulting from calculating depreciation...
Problem 7-9 (algorithmic) Question Help A global positioning system (GPS) receiver is purchased for $6,000. The IRS inf...
Problem 7-9 (algorithmic) Question Help A global positioning system (GPS) receiver is purchased for $6,000. The IRS informs your company that the useful (class) life of the system is eight years. The expected market (salvage) value is $500 at the end of year eight. a. Use the straight line method to calculate depreciation in year two. b. Use the 200% declining balance method to calculate the cumulative depreciation through year three. c. Use the MACRS method to calculate the cumulative...
Check my work Freedom Corporation acquired a fixed asset for $200,000. Its estimated life at time...
Check my work Freedom Corporation acquired a fixed asset for $200,000. Its estimated life at time of purchase was 4 years, with no estimated salvage value. Assume a discount rate of 11% and an income tax rate of 40%. (Use Exhibit 12.4, Appendix C, TABLE 1 and Appendix C, TABLE 2.) 0.25 points Skipped Required: 1. What is the incremental present value of the tax benefits resulting from calculating depreciation using the sum-of-the-years’-digits (SYD) method rather than the straight-line (SLN)...
Question 2 (40 points) Please provide your response to the nearest integer with no comma or $ sign. A tractor for over-the-road hauling is purchased for $98,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,000. Calculate the depreciation deduction and the the book value during each year of the tractors life. Use straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 =...
A high-precision programmable router for shaping furniture components (manufacturing equipment) is purchased by Henredon for $240,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances. a. What is the MACRS-GDS property class? (format example: 3 year) Calculate the depreciation deduction using MACRS-GDS allowances for year 5 = $. Please provide your response to the nearest integer with no comma or $ sign. Calculate the book value using MACRS-GDS allowances...
Question 3 (40 points) A high-precision programmable router for shaping furniture components (manufacturing equipment) is purchased by Henredon for $240,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances. a. What is the MACRS-GDS property class? (format example: 3 year) Calculate the depreciation deduction using MACRS-GDS allowances for year 5 = $. Please provide your response to the nearest integer with no comma or $ sign. Calculate the book...
Question 1 (40 points) A high-precision programmable router for shaping furniture components is purchased by Henredon for $200,000. It is expected to last 12 years. Calculate the depre ciation deduction and book value for each year using MACRS-GDS all owances a. what is the MACRS-GDS propry class? (format example: 3 year) Calculate the depre ciation deduction using MACRS-GDS all owances for year 5 - Calculate the book value using MACRS-GDS allowances for year 5S Assume the asset is sold during...
Please explain each step with number and
logic.
A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Calculate the depreciation deduction and the unrecovered investment during each year of the tractor's life using MACRS-GDS allowances. a. What is the MACRS-GDS property class? ANSWER b. Assume the tractor is used for the full 6 years ANSWER C. Assume the tractor...
A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that the useful (class) life of the system is seven years. The expected market (salvage) value is $450 at the end of year seven a. Use the straight line method to calculate depreciation in year three. b. Use the 200% declining balance method to calculate the cumulative depreciation through year four. c. Use the MACRS method to calculate the cumulative depreciation through year five. d....
Please explain in detail.
Material-handling equipment used in the manufacture of grain products (MACRS-GDS 10-year property) is purchased and installed for $180,000. It is placed in service in the middle of the tax year. If it is removed just before the end of the tax year approximately 4.5 years from the date placed in service, determine the depreciation deduction during each of the tax years involved using MACRS-GDS allowances.
Exercise 12-29 Value of Accelerated Depreciation: Sum-of-Years'-Digits (SYD) and Double Declining. Balance (DDB) Methods (LO 12-3) Freedom Corporation acquired a fixed asset for $100,000. Its estimated life at time of purchase was 4 years, with no estimated salvage value. Assume a discount rate of 8% and an income tax rate of 40%. (Use Exhibit 124. Appendix C. TABLE 1 and Appendix C. TABLE 2) Required: 1. What is the incremental present value of the tax benefits resulting from calculating depreciation...
Problem 7-9 (algorithmic) Question Help A global positioning system (GPS) receiver is purchased for $6,000. The IRS informs your company that the useful (class) life of the system is eight years. The expected market (salvage) value is $500 at the end of year eight. a. Use the straight line method to calculate depreciation in year two. b. Use the 200% declining balance method to calculate the cumulative depreciation through year three. c. Use the MACRS method to calculate the cumulative...
Check my work Freedom Corporation acquired a fixed asset for $200,000. Its estimated life at time of purchase was 4 years, with no estimated salvage value. Assume a discount rate of 11% and an income tax rate of 40%. (Use Exhibit 12.4, Appendix C, TABLE 1 and Appendix C, TABLE 2.) 0.25 points Skipped Required: 1. What is the incremental present value of the tax benefits resulting from calculating depreciation using the sum-of-the-years’-digits (SYD) method rather than the straight-line (SLN)...
Most questions answered within 3 hours.
-
A 3.15-g bullet embeds itself in a 1.17-kg block, which is
attached to a spring of...
asked 1 minute from now -
A hawk is flying horizontally at 24.0 m/s in a straight line,
185 m above the...
asked 1 minute from now -
1a. An aqueous solution of calcium hydroxide is
standardized by titration with a 0.116 M solution...
asked 33 seconds ago -
In response to concerns about nutritional contents of fast
foods, McDonald's has announced that it will...
asked 16 minutes ago -
A gun with inertia 5.5 kg fires a 13-g bullet at a stationary
target located 1.0...
asked 18 minutes ago -
A box contains twenty-five screws which are identical in size,
but 13 of which are copper...
asked 20 minutes ago -
“Is it possible that objectively
a product is high quality but subjectively low
quality?”
Please support...
asked 22 minutes ago -
OCHEM LAB
Why does hydration of 2-methyl-3-butyn-2-ol give the ketone,
3-hydroxy-3-methyl-2-butanone (4), rather than the aldehyde,...
asked 31 minutes ago -
A sample of gas at 15 ⁰C and 0.988 atm has a volume of 2.58
liters....
asked 38 minutes ago -
Enzymes are required in retroviruses because the genome
is not used directly as mRNA (T/F)
Please...
asked 37 minutes ago -
An AC generator supplies an rms voltage of 240 V at 50.0 Hz. It
is connected...
asked 49 minutes ago -
Raising taxes on wealthy Americans won’t be enough to deal with the
nation’s budget deficit. Some...
asked 33 minutes ago