Computers are the 5 year class property under MACRS deprecation (half year convention).
Initial value = $60656
So,
Book value at the end of 4 years = 60656*(1 - (20% + 32% + 19.2% + 11.52%))
Book value at the end of 4 years = $10481.36
QUESTION 1 10 points Save Answer A company buys $60,656 of computers. What is the Book...
QUESTION 3 10 points Save Answer A company buys $45,927 of computers. What is the BV for this asset in year 2 using MACRS? (Assume half - year convention) QUESTION 3 10 points Save Answer A company buys $45,927 of computers. What is the BV for this asset in year 2 using MACRS? (Assume half - year convention)
QUESTION 5 10 points Save Answer A company buys $15,715 of computers. What is the depreciation for this asset in year 4?
QUESTION 4 10 points Save Answer A company buys $62,062 of computers. What is the depreciation for this asset in year 3?
QUESTION 8 1 points Save Answer The original basis includes the amount of shipping and setup True False QUESTION 9 1 points Save Answer the book value of an aset is what the company can get on the open market for the asset True False QUESTION 10 1 points Save Answer The useful life of an asset in the expected time it could generato revenue True False QUESTION 11 point Save Anawar Sum of the years digits is this type...
Question 4 0.6 points Save Answer Pearson Company bought a machine on January 1, 2017. The machine cost $180,000 and had an expected salvage value of $30,000. The life of the machine was estimated to be 5 year. The book value of the machine at the end of the second year would be $180,000 $150,000 $120,000 $80,000
QUESTION 7 10 points Save Answer Last Year, a corporation had a book value of equity of $300 million of USDs, 2.5 million shares outstanding, and a market price of $30 per share. The corporation also had cash of $2.5 million of USDs, and total debt of $250 million USDs. What was the corporation's book debt-equity ratio? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer, or if the...
Question Completion Status: QUESTION 9 1 points Save Brandon buys a piece of equipment for $15,000. He pays $5,000 for upgrades in year 1 and the equipment generates $2,000 in cash flow for year 1. In year 2 the equipment generates $8,000, year 3 it generates $4,000, but Brandon sells it for $6,000 but also pays a $500 commission. Assume a required rate of return of 8%, what is the NPV? ○ <3,378>. O 3,378. ○ <2,178>. 2,178. QUESTION 10...
Question 4 0.6 points Save Answer Pearson Company bought a machine on January 1, 2017. The machine cost $180,000 and had an expected salvage value of $30,000. The life of the machine was estimated to be 5 years. The book value of the machine at the end of the second year would be $180,000. O $150,000. O $120,000. O $60,000
Question 5 1 points Save Anne A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3.950,000 and can be sold for $760,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent. 32,00 percent. 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 35 percent. What is the aftertax salvage value of the equipment? O $760,000 $494.000...
QUESTION 2 10 points Save Answer Wright Company purchased a new piece of equipment to use in its business. The details of the purchase and related costs are as follows: 1. Purchase price of equipment $140,000 2. Installation of equipment 12,000 3. Freight costs (FOB shipping point) 2,000 4. Annual salary of new employee hired to operate the equipment 40,000 5. Increase in the annual cost of the fire and theft insurance policy 1,000 to cover the new equipment Determine...