Question

Week 13 Review Problems 10 Problem 13-40 Increasing ROl over Time; Accelerated Depreciation (LO 13-2,13-4,13-5) Suncoast Food Centers has provided the following information with regard to the purchase of equipment. points Acquiaition coat of equipment Useful life Salvage value at end of useful 1ife Annual incone generated by asset (before deducting depreciation) $500,000 5 yeara eBook $150,000 References The following is the accelerated depreciation schedule of the equipment. 200, 000 120,000 72,000 54,000 $500,000 Total Required: Using the information provided above, complete the table given below. If there is a loss, leave the ROl column blank. (Round your "ROI" percentage answers to 1 decimal place (i.e., .1234 should be entered as 12.3).) ROI Based on Gross Book Value Annual Income Net of Depreciation Average Net ROI Based on Net Gross Book Value Year Book Value Book Value $ 150,000 150,000 150,000 150,000 150,000 56 < Prev 1° of 10 Next

Answer 1

Year	Income Before Depreciation	Annual Depreciation	Income Net of Depreciation	Average Net Book Value	ROI Based on Net Book Value		Average Gross Book Value	ROI Based on Gross Book Value
1	$150,000	$200,000	($50,000)	400000	-12.5	%	500000	-10	%
2	150,000	120,000	30,000	240000	12.5	%	500000	6	%
3	150,000	72,000	78,000	144000	54.2	%	500000	15.6	%
4	150,000	54,000	96,000	81000	118.5	%	500000	19.2	%
5	150,000	54,000	96,000	27000	355.6	%	500000	19.2	%