1)
depreciation in year 5
= cost of asset * depreciation rate
= 35,000,000 * 8.93%
= 3125500
2)
book value = cost of asset - accumulated depreciation
= 35000000 - 35000000 * (0.1429 + 0.2449 + 0.1749 + 0.1249 + 0.0893)
= 7808500
Intro Southwest Airlines just bought a new jet for $35,000,000. The jet falls into the 7-...
Intro Southwest Airlines just bought a new jet for $39,000,000. The jet falls into the 7-year MACRS category, with the following depreciation rates (half-year convention): Year 1 2 3 4 5 6 7 8 Depr. rate 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% Part 1 What was the depreciation in year 5?
Intro Southwest Airlines just bought a new jet for $39,000,000. The jet falls into the 7-year MACRS category, with the following depreciation rates (half-year convention): Year 1 2 3 4 5 6 7 8 Depr. rate 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% Part 1 What was the depreciation in year 5? Depreciation = Initial book value * Depreciation rate = 39,000,000 * 0.0893 = 3,482,700 Correct ✓ Part 2 What is the book value at the end of...
A project requires $414073 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?
A project requires $37,655 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
A project requires $72,645 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
A project requires $471428 of equipment that is classified as 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
Gerdin Inc. just purchased a piece of new equipment at a cost of $230,000. This equipment belongs to the MACRS 3-year depreciation class. The associated percentages for different depreciation classes are presented in the following table. What is the annual depreciation of this equipment in year 3? year 3-year 5-year 7-year 1 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.92% 7 8.93% 8 4.46% $44,160 ...
A project requires $315929 of equipment that is classified as 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and4.46 percent?
ABC Company purchased $50701 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $4916. What is the After-tax Salvage Value if the tax rate is 20%? The MACRS allowance percentages are as follows, commencing with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.
5 years ago, Osprey Paper paid $1,000,000 for a new machine. The equipment is classified as 7-year property under MACRS (the MACRS rate are listed below). If the company has a 34% tax rate and sells the equipment today for $210,000, what are the after-tax proceeds from selling the equipment? Year 1 2 3 4 5 6 7 8 Rate (%) 14.29 24.49 17.49 12.49 8.94 8.92 8.93 4.46