An equipment has been purchased for a project to be completed in 6 years. The initial...
An equipment has been purchased for a project to be completed in 6 years. The initial cost of equipment (6) was Rs. 7,500,000. It is estimated that the used equipment can be sold in auction at a price of Rs. 1,200,000 after completion of the project. The expected/planned yearly usage of the equipment is as follows: Year Equipment Usage (Hours) 1 140 2 170 3 230 4 80 5 110 6 70 Develop the yearly depreciation schedule of the equipment...
Q.3 An equipment has been purchased for a project to be completed in 6 years. The initial cost of equipment was Rs. 7,500,000. It is estimated that the used equipment can be sold in auction at a price of Rs. 1,200,000 after completion of the project. The expected/planned yearly usage of the equipment is as follows: Year Equipment Usage (Hours) 1 140 2 170 3 230 4 80 5 110 6 70 Develop the yearly depreciation schedule of the equipment...
CBOOK Calculator Depreciation by Three Methods; Partial Years Perdue Company purchased equipment on April 1 for $91,800. The equipment was expected to have a useful life of three years, or 8,100 operating hours, and a residual value of $2,700. The equipment was used for 1,500 hours during Year 1, 2,800 hours in Year 2, 2,400 hours in Year 3, and 1,400 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1,...
Power Manufacturing has equipment that it purchased 6 years ago for $2,700,000. The equipment was used for a project that was intended to last for 8 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $430,000 today. The company's tax rate is 40 percent. What is the aftertax salvage value of the equipment? Multiple Choice O $602,000 O $430,000 O $332,000 O $479,000 O...
7 You are assessing an investment project that has the following associate accounting assessments Completed market research project Capital investment requirement Annual revenues for 6 years Allocated overheads from head office Cost of goods sold (annual) Capital depreciation $80,000 $250,000 rs$150,000 $10,000 annually $70,000 5 year straight line What is the NPV of the project at 7% (10) 7 You are assessing an investment project that has the following associate accounting assessments Completed market research project Capital investment requirement Annual...
11-6 Coronado Company purchased equipment for $248,240 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,920. Estimated production is 40,400 units and estimated working hours are 20,000. During 2017, Coronado uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Coronado is on a calendar-year basis ending December 31. (Round rate per hour and...
please ignore the selected answer! Power Manufacturing has equipment that it purchased 6 years ago for $2.500,000. The equipment was used for a project that was intended to last for 8 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $390,000 today. The company's tax rate is 35 percent. What is the aftertax salvage value of the equipment? Multiple Choice $307750 $390,000 $526,500 $43125...
thank you Question 6 View Policies Current Attempt in Progress Sunland Company purchased equipment for $222.000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13.200. Estimated production is 36,000 units and estimated working hours are 20.000. During 2020, Sunland uses the equipment for 550 hours and the equipment produces 1.000 units Compute depreciation pense under each of the following methods. Sunland is on a calendar...
Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Exercise 11-6 Buffalo Company purchased equipment for $223,095 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,840. Estimated production is 39,300 units and estimated working hours are 19,900. During 2017, Buffalo uses the equipment for 530 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Buffalo is on a calendar-year...
An equipment has a total initial cost of $9000 with a 5 years useful life. Assume a salvage value of $750. Prepare a yearly depreciation schedule showing the depreciation charge and book value at the beginning and end of each year. Use the Straight-Line Depreciation (SLD) method to answer following questions 4) a. Compute the yearly depreciation (show your solution handwriting or in Word document) b. Fill in the table below (show your solution handwring or in Word document) Year...