5-1 You purchase a new piece of equipment for $150,000. Using MACRS and a recovery period...

Question

Question

5-1 You purchase a new piece of equipment for $150,000. Using MACRS and a recovery period of three years, calculate: a. The depreciation amount in the second year. b. The book value at the end of the second year. 5-2 Cost basis S550,000; recovery period-10 years; salvage value $25,000. a.Using the sraigh line method, what i he amual depreciation? b. What is the book value at the end of the recovery period? 5-3 B- $270,000; SV-$15,000; recovery period-8 years. a. Using DDB, construct a table showing yearly depreciation and book value. b. Construct a table showing DDB switching to SL depreciation. 5-4 B $45,000, SV-$8,000, recovery period 7 years. a. Using DDB, construct a table showing yearly depreciation and book value. b. Using MACRS, construct a table showing yearly depreciation and book value.

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Similar Homework Help Questions

An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will...

An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will be kept for 10 years before being sold. The estimated salvage value (SV) for depreciation purposes is to be $25,000. Use this information to solve the following questions: a) Using the straight line (SL) method, the annual depreciation on the equipment is _________________. b) Using the double declining balance (DDB) method, the depreciation charge in year 3 is ______________. c) Using the SL method,...
Income Statement, Depreciation table (20 points) Equipment with a first cost of $120.000 is depreciated by MACRS wi...

Income Statement, Depreciation table (20 points) Equipment with a first cost of $120.000 is depreciated by MACRS wil period. The estimated expenses are $17,500 each year, annual revenues effective tax rate is 40%. preciated by MACRS with a 5-year recovery year; annual revenues are $90,000. The (a) (10 points) Construct a table showing yearly depreciation rate, dep book value to fully depreciate the machine. any depreciation rate, depreciation amount, and 10 points) Construct a complete income statement (using the format...
The installed cost of a new computerized controller was $62,000. Calculate the depreciation schedule by year assuming a recovery period of 5 years and using the appropriate MACRS depreciation percent...

The installed cost of a new computerized controller was $62,000. Calculate the depreciation schedule by year assuming a recovery period of 5 years and using the appropriate MACRS depreciation percentag given in the table EEB Complete the depreciation schedule for the new computerized controller below: Data Table Recovery Year Depreciation (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Depreciation Recovery Year Rounded Depreciation Percentages by...

Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery...

Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 33% 20% 14% 45% 32% 25% 15% 19% 18% 7% 12% 12% N 10 years 10% 18% 14% 12% 9% 8% OO 000 6% 4% Totals 100% 100% 100% 100% Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery Elapsed time since...
Use the MACRS 5-year schedule to determine the maximum yearly depreciation allowance for a piece of...

Use the MACRS 5-year schedule to determine the maximum yearly depreciation allowance for a piece of equipment that has an original value of $ 130,000, including double declining balance switching to straight-line method with half-year convention. Please show all your calculations, and then list the results in a table.
Use the MACRS 5 year schedule to determine the maximum yearly depreciation allowance for a piece...

Use the MACRS 5 year schedule to determine the maximum yearly depreciation allowance for a piece of equipment that has an original value of $130,000, including double declining balance switching to straight-line method with half‐year convention. Please show all your calculations,and then list the results in a table.

***********I NEED JUST PART E************ Thanks in advance!!! An oil refinery has decided to purchase some...

***********I NEED JUST PART E************ Thanks in advance!!! An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will be kept for 10 years before being sold. The estimated salvage value (SV) for depreciation purposes is to be $25,000. Use this information to solve the following questions: a) Using the straight line (SL) method, the annual depreciation on the equipment is b) Using the double declining balance (DDB) method, the depreciation charge in year 3...
An oil refinery has decided to purchase some new drilling equipment for $440,000. The equipment will...

An oil refinery has decided to purchase some new drilling equipment for $440,000. The equipment will be kept for 9 years before being sold. The estimated SV for depreciation purposes is to be $18,000. If MACRS depreciation is used, what is the recovery period of the equipment using the GDS guidelines? Click the icon to view the partial listing of depreciable assets used in business. Choose the correct answer below. O A. The recovery period of the equipment using the...
1. A piece of office equipment is purchased for $110,000 and has an estimated salvage value...

1. A piece of office equipment is purchased for $110,000 and has an estimated salvage value of $10,000 at the end of the recovery period. Using excel, prepare a depreciation schedule for the piece of equipment using ONLY the straight line method with a recovery period of _____ years. For tax purposes, the IRS has stated this specific piece of equipment has a standard recovery period of how many years? (Fill in the blank). 2. Using excel, prepare a depreciation...

*P11-12 (L01,6) EXCEL (Depreciation—SL, DDB, SYD, Act., and MACRS) On January 1, 2016, Locke Company, a small machine-tool manufacturer, acquired for $1,260,000 a piece of new industrial equipment. Th...

*P11-12 (L01,6) EXCEL (Depreciation—SL, DDB, SYD, Act., and MACRS) On January 1, 2016, Locke Company, a small machine-tool manufacturer, acquired for $1,260,000 a piece of new industrial equipment. The new equipment had a useful life of 5 years, and the salvage value was estimated to be $60,000. Locke estimates that the new equipment can produce 12,000 machine tools in its first year. It estimates that production will decline by 1,000 units per year over the remaining useful life of the...

5-1 You purchase a new piece of equipment for $150,000. Using MACRS and a recovery period...

Homework Answers

Request Answer!

Add Answer to:
5-1 You purchase a new piece of equipment for $150,000. Using MACRS and a recovery period...

Post as a guest

Earn Coins

An oil refinery has decided to purchase some new drilling equipment for $550,000. The equipment will...

Income Statement, Depreciation table (20 points) Equipment with a first cost of $120.000 is depreciated by MACRS wi...

The installed cost of a new computerized controller was $62,000. Calculate the depreciation schedule by year assuming a recovery period of 5 years and using the appropriate MACRS depreciation percent...

Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery...

Use the MACRS 5-year schedule to determine the maximum yearly depreciation allowance for a piece of...

Use the MACRS 5 year schedule to determine the maximum yearly depreciation allowance for a piece...

*I NEED JUST PART E** Thanks in advance!!! An oil refinery has decided to purchase some...

An oil refinery has decided to purchase some new drilling equipment for $440,000. The equipment will...

1. A piece of office equipment is purchased for $110,000 and has an estimated salvage value...

*P11-12 (L01,6) EXCEL (Depreciation—SL, DDB, SYD, Act., and MACRS) On January 1, 2016, Locke Company, a small machine-tool manufacturer, acquired for $1,260,000 a piece of new industrial equipment. Th...

5-1 You purchase a new piece of equipment for $150,000. Using MACRS and a recovery period...

Homework Answers

Request Answer!

Add Answer to: 5-1 You purchase a new piece of equipment for $150,000. Using MACRS and a recovery period...

Post as a guest

Earn Coins

Add Answer to:
5-1 You purchase a new piece of equipment for $150,000. Using MACRS and a recovery period...