As per rules I am answering the first 4 subparts of the question
1: Annual depreciation =Cost/Useful life
= 85000/7 = 12142.86
2: First and last year depreciation = Annual depreciation/2 = 12142.86/2
= 6071.43
3: Year 1 MACRS depreciation = 14.29%*85000 = 12146.50
4: Year 2 MACRS depreciation= 24.49%*85000 = 20816.50
5. Depreciation expense. Richardses' Tree Farm, Inc. has just purchased a new aerial tree trimmer for $85,000. C...
Depreciation expense. Richardses' Tree Farm, Inc has just purchased a new aerial tree trimmer for $90.000 Calculate the depreciation schedule using a seven-year life (for the property class category of a single-purpose agricultural and horticultural structure from Table 10.3) for both straight-line depreciation and MACRS, ES Use the half-year convention for both methods. Compare the depreciation schedules before and after taxes using a 40% tax rate. What do you notice about the difference between these two methods? Using a seven-year...
Cost recovery.
Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer
for $94,000. It is classified in the property class category of a
single-purpose agricultural and horticultural structure. Then the
company sold the tree trimmer after four years of service. If a
seven-year life and MACRS,
, was used for the depreciation schedule, what is the
after-tax cash flow from the sale of the trimmer (use a 40%tax
rate) if
a. the sales price was $30,000?
b. the...
6. Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $94,000. It is classified in the property class category of a single-purpose agricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS,!, was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a 35% tax rate) if a. the sales price was $36,000? b. the...
Depreciation cxpcnsc. Richardses' Tree Farm, Inc. has just purchased a new aerial tree trimmer for $90,000. Calculate the depreciation schedule using a seven year life (for the property class category of a single purpose agricultural and horticultural structure from Table 10.3) for both straight-line depreciation and MACRS, EE. Use the half-year convention for both methods. Compare the depreciation schedules before and after taxes using a 40% tax rate. What do you notice about the difference between these two methods? Using...
P10-10 (similar to) Question Help Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $87,000. It is classified in the property class category of a single-purpose agricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS, , was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a 40% tax rate) if a. the sales...
Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $82,000. It is classified in the property class category of a single-purpose agrioultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS, was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a 35 % tax rate) if a. the sales price was $36,000? b. the...
10.8 Depreciation expense. (10 Part Answer)
Richardses' Tree Farm, Inc. has just purchased a new aerial
tree trimmer for $89,000. Calculate the depreciation schedule
using aseven-year life (for the property class category of a
single-purpose agricultural and horticultural structure from Table
10.3) for both straight-line depreciation and MACRS,
Use the half-year convention for both methods. Compare the
depreciation schedules before and after taxes using a 40% tax
rate.
What do you notice about the difference between these two
methods?...
P10-8 (similar to) Question Help O Depreciation expense. Richardses Tree Farm, Inc. has just purchased a new acrial tree trimmer for $95,000. Calculate the depreciation schedule using a seven-year life (for the properly class category of a single-purpose agricultural and horticultural structure from Table 10.3) for both straight-line depreciation and MACRS, B. Use the half-year convention for both methods. Compare the depreciation schedules before and after taxes using a 40% tax rate. What do you notice about the difference between...
Richardes' Tree Farm, Inc. purchased a new aerial tree trimmer for
$82,000. It is classified in the property class category of a
single – purpose agriculture and horticultural structure. then the
company sold the tree trimmer after four years of service. If the
seven your life and MARCS, was used for the depreciation schedule,
what is the after-tax cash flow from the sale of the trimmer (use a
35% tax rate) if
a. the sales price was $36,000?
b. the...
P10-10 (similar to) Question Help Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $93,000. It is classified in the properly class category of a single-purpose agricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS, B. was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a 40% tax rate) it a. the sales...