your company is planning on purchasing a new assembly line. this new line will cost the...
your company is planning on purchasing a new assembly line. this new line will cost the company $125,000. at the end of the life of use at 200,000 hours it will be worth $15,000. what is the depreciation rate per hour and the book value given that the machinery will run for 55,000 hours?
Homework Answers
Depreciation rate per hour = ($125,000 - $15,000) / 200,000 hours = $0.55
Depreciation expense 55,000 hours = 55,000 * $0.55 = $30,250
Book value = $125,000 - $30,250 = $94,750
Add Answer to:
your company is planning on purchasing a new assembly line. this
new line will cost the...
Suppose your company is thinking of purchasing a new assembly line for $900,000 in initial investment...
Suppose your company is thinking of purchasing a new assembly line for $900,000 in initial investment cost.The current interest rate is 6 percent.The new line is expected to last for four years and has no salvage value. It is anticipated that the new line will generate the following cash flows: Year 1 $500,000 Year 2 $375,000 Year 3 $ 25,000 Year 4 $ 20,000 1. This sums to greater than $900,000. Shouldn’t the company buy the assembly line? Why or why not? ( don't have to...
Your consulting company is planning to purchase a new server for knowledge management. The initial cost...
Your consulting company is planning to purchase a new server for knowledge management. The initial cost of the server amounts to $ 500,000 with a salvage value of $ 30,000 at the end of its useful life, which is 5 years. Prepare a table in which the depreciation expense and the book value are compared for SL and MACRS depreciation methods.
DragonFlights, Inc. is planning on purchasing a new flying dragon for their new route to Volantis....
DragonFlights, Inc. is planning on purchasing a new flying dragon for their new route to Volantis. The cost of the dragon is $10.3 million. On average the dragons are operational for about 10 years. Dragon will be retired after 10 years with no salvage value. Marketing department of DragonFlights has conducted consumer surveys and market research in order to determine market demand and estimate future sales. This research has cost them $100,000. Based on the results of market studies management...
DragonFlights, Inc. is planning on purchasing a new flying dragon for their new route to Volantis....
DragonFlights, Inc. is planning on purchasing a new flying dragon for their new route to Volantis. The cost of the dragon is $10.3 million. On average the dragons are operational for about 10 years. Dragon will be retired after 10 years with no salvage value. Marketing department of DragonFlights has conducted consumer surveys and market research in order to determine market demand and estimate future sales. This research has cost them $100,000. Based on the results of market studies management...
Ivanhoe Corporation purchased a new machine for its assembly process on August 1, 2017. The cost...
Ivanhoe Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $146,196. The company estimated that the machine would have a salvage value of $15,996 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,200 hours. Year-end is December 31 Compute the depredation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate...
28. The company estimated that Pharoah Corporation purchased a new machine for its assembly process on August 1, 2017....
28. The company estimated that Pharoah Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $ 155,628. The company estimated that the machine would have a salvage value of $17,028 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 19,800 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should...
The Bistro is planning to add a new line of noodles that will require the acquisition of new processing equipment. The equipment will cost $1,000,000, including installation and shipping. It will be depreciated straight-line to zero value over the 10-year
The Bistro is planning to add a new line of noodles that will require the acquisition of new processing equipment. The equipment will cost $1,000,000, including installation and shipping. It will be depreciated straight-line to zero value over the 10-year economic life of the project. Interest cost associated with financing the equipment purchase is estimated to be $40,000 annually. The expected salvage value of the machine at the end of 10 years is $200,000. One year ago a marketing survey...
Vaughn Corporation purchased a new machine for its assembly process on August 1, 2020. The cost...
Vaughn Corporation purchased a new machine for its assembly
process on August 1, 2020. The cost of this machine was $153,300.
The company estimated that the machine would have a salvage value
of $18,300 at the end of its service life. Its life is estimated at
5 years, and its working hours are estimated at 22,500 hours.
Year-end is December 31.
Compute the depreciation expense under the following methods. Each
of the following should be considered unrelated. (Round
depreciation rate...
Factor Company is planning to add a new product to its line. To manufacture this product,...
Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $511,000 cost with an expected four-year life and a $23,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)...
1. (12 points) Robert Parish Corporation purchased a new machine for its assembly process on January...
1. (12 points) Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $17,900 at the end of its service life. Its life is estimated at 4 years, and its working hours are estimated at 10,000 hours. Year-end is December 31. Instructions Compute the depreciation expense under the following methods and complete the depreciation schedules below....
DragonFlights, Inc. is planning on purchasing a new flying dragon for their new route to Volantis. The cost of the dragon is $10.3 million. On average the dragons are operational for about 10 years. Dragon will be retired after 10 years with no salvage value. Marketing department of DragonFlights has conducted consumer surveys and market research in order to determine market demand and estimate future sales. This research has cost them $100,000. Based on the results of market studies management...
Ivanhoe Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $146,196. The company estimated that the machine would have a salvage value of $15,996 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,200 hours. Year-end is December 31 Compute the depredation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate...
28. The company estimated that Pharoah Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $ 155,628. The company estimated that the machine would have a salvage value of $17,028 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 19,800 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should...
Vaughn Corporation purchased a new machine for its assembly
process on August 1, 2020. The cost of this machine was $153,300.
The company estimated that the machine would have a salvage value
of $18,300 at the end of its service life. Its life is estimated at
5 years, and its working hours are estimated at 22,500 hours.
Year-end is December 31.
Compute the depreciation expense under the following methods. Each
of the following should be considered unrelated. (Round
depreciation rate...
1. (12 points) Robert Parish Corporation purchased a new machine for its assembly process on January 1, 2014. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $17,900 at the end of its service life. Its life is estimated at 4 years, and its working hours are estimated at 10,000 hours. Year-end is December 31. Instructions Compute the depreciation expense under the following methods and complete the depreciation schedules below....
Most questions answered within 3 hours.
-
In Netherland Dwarf rabbits, dwarf size is determined by allele
N, and normal-size by allele n....
asked 37 seconds ago -
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 15 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 18 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 25 minutes ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 26 minutes ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 31 minutes ago -
how
to use a for loop to iterate over the string below and print each
character...
asked 33 minutes ago -
Please type answer, Thanks.
Respond to the following in a minimum of 175
words:
Research industry...
asked 32 minutes ago -
Assume that all interest rates in the economy increase from 9
percent to 10 percent. Which...
asked 42 minutes ago -
Describe the function of a Change Control Board.
When calculating Planned Value (PV), what is the...
asked 48 minutes ago -
The customer help center in your company receives calls from
customers who need help with some...
asked 59 minutes ago -
A manufacturer wished to compare the wearing qualities of two
different types of automobile tires, A...
asked 57 minutes ago