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P4-1 Depreciation On March 20, 2012, Norton Systems acquired two new assets. Asset A was research...
MACRS Schedule Table: Book value and taxes on sale of assets Troy Industries purchased a new...
MACRS Schedule Table:
Book value and taxes on sale of assets Troy Industries purchased a new machine 3 year(s) ago for $76,000. It is being Assume 40% ordinary and capital gains tax depreciated under MACRS with a 5-year recovery period using the schedule rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $91,200; $53,200; $22,040; and $15,400. a. The remaining book value...
Book value and taxes on sale of assets - Troy Industries purchased a new machine 3...
Book value and taxes on sale of assets - Troy Industries purchased a new machine 3 years ago for $84,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule. Assume 40% ordinary and capital gains tax rate. Rounded Depreciation Percentages by Recover Year Using MACRS for First Four Property Classes Percentages by Recover Year* Recovery Year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3...
Book value Find the book value for the asset shown in the accompanying table, assuming that...
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) Elapsed time since purchase (years) Data Table Asset А Installed cost $994,000 The remaining book value is $ (Round to the nearest dollar.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First...
Book value Find the book value for the asset shown in the accompanying table, assuming that...
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery Elapsed time period since purchase Asset Installed cost (years) (years) А $935,000 5 The remaining book value is $(Round to the nearest dollar.) Enter your answer in De answer box and then click Check Answer All parts showing Clear All Check Answer - X Book value Find Data Table In Asset А The remaining book (Click on the...
Initial investment: Basic calculation Cushing Corporation is considering the pur- chase of a new grading machine...
Initial investment: Basic calculation Cushing Corporation is considering the pur- chase of a new grading machine to replace the existing one. The existing machine was purchased 3 years ago at an installed cost of $20,000; it was being depreciated under MACRS, using a 5-year recovery period. (See Table 4.2 for the applicable depreciation percentages.) The existing machine is expected to have a usable life of at least 5 more years. The new machine costs $35,000 and requires $5,000 in instal-...
Book value Find the book value for the asset shown in the accompanying table, assuming that...
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used ! Recovery period years) Elapsed ome since purchase years) i Data Table Asset installed cost 5906.000 Percentage by recovery year The remaining book value is [Round to the nearest dollar) 10 years 25% 18 1004 E OUT answer in the answer box and then click check Answer 100% 100% These percentages have been founded to the nearest whole percent...
U-10 S alt st Depreciation Afirm is evaluating the acquisition of an asset that costs $66,300...
U-10 S alt st Depreciation Afirm is evaluating the acquisition of an asset that costs $66,300 and requires $4.350 in installation costs. If the firm depreciates the asset under MACRS, using a 5-year recovery period (see table ). determine the depreciation charge for each year. The annual depreciation expense for year 1 will be $ (Round to the nearest dollar.) Data Table Click on the icon located on the top-right corner of the data table below in order to copy...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $206,000 and will require $29,200 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $20,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $195,000 and will require $30,500 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $29,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset,...
Depreciation and accounting cash flow A firm in the third year
of depreciating its only asset, which originally cost $173,000 and
has a 5-year MACRS recovery period
, has gathered the following data relative to the current
year's operations:
Accruals
$15,300
Current assets
117,000
Interest expense
15,200
Sales revenue
413,000
Inventory
69,600
Total costs before depreciation, interest and taxes
297,000
Tax rate on ordinary income
21%
a. Use the relevant data to determine the operating cash flow
for the current...
MACRS Schedule Table:
Book value and taxes on sale of assets Troy Industries purchased a new machine 3 year(s) ago for $76,000. It is being Assume 40% ordinary and capital gains tax depreciated under MACRS with a 5-year recovery period using the schedule rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $91,200; $53,200; $22,040; and $15,400. a. The remaining book value...
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) Elapsed time since purchase (years) Data Table Asset А Installed cost $994,000 The remaining book value is $ (Round to the nearest dollar.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First...
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery Elapsed time period since purchase Asset Installed cost (years) (years) А $935,000 5 The remaining book value is $(Round to the nearest dollar.) Enter your answer in De answer box and then click Check Answer All parts showing Clear All Check Answer - X Book value Find Data Table In Asset А The remaining book (Click on the...
Initial investment: Basic calculation Cushing Corporation is considering the pur- chase of a new grading machine to replace the existing one. The existing machine was purchased 3 years ago at an installed cost of $20,000; it was being depreciated under MACRS, using a 5-year recovery period. (See Table 4.2 for the applicable depreciation percentages.) The existing machine is expected to have a usable life of at least 5 more years. The new machine costs $35,000 and requires $5,000 in instal-...
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used ! Recovery period years) Elapsed ome since purchase years) i Data Table Asset installed cost 5906.000 Percentage by recovery year The remaining book value is [Round to the nearest dollar) 10 years 25% 18 1004 E OUT answer in the answer box and then click check Answer 100% 100% These percentages have been founded to the nearest whole percent...
U-10 S alt st Depreciation Afirm is evaluating the acquisition of an asset that costs $66,300 and requires $4.350 in installation costs. If the firm depreciates the asset under MACRS, using a 5-year recovery period (see table ). determine the depreciation charge for each year. The annual depreciation expense for year 1 will be $ (Round to the nearest dollar.) Data Table Click on the icon located on the top-right corner of the data table below in order to copy...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $206,000 and will require $29,200 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $20,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $195,000 and will require $30,500 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $29,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Depreciation and accounting cash flow A firm in the third year
of depreciating its only asset, which originally cost $173,000 and
has a 5-year MACRS recovery period
, has gathered the following data relative to the current
year's operations:
Accruals
$15,300
Current assets
117,000
Interest expense
15,200
Sales revenue
413,000
Inventory
69,600
Total costs before depreciation, interest and taxes
297,000
Tax rate on ordinary income
21%
a. Use the relevant data to determine the operating cash flow
for the current...
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