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5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end...
5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value...
5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end of 8 year useful life. Compute the depreciation table by (a) Straight Line method (b) MACRS method (7-year property) (c) If you want to sell the machine in 4th year what book value you will use? (a) What book value you will use to pay tax to IRS in 4 year?
Question 1: A machine was purchased for $175,745. It has a salvage value of $46,873 and...
Question 1: A machine was purchased for $175,745. It has a salvage value of $46,873 and a useful life of 14 years. It is classified as a MACRS 10-year property. Using MACRS depreciation, calculate the depreciation in year 5. Enter your answer as 12345 Round your answer. Do not use a dollar sign ("$"), any commas (","), or a decimal point ("."). Question 2: McCloskley Enterprises buys a machine classified as a MACRS 15-year property for $178,996. It has a...
On June 1, a machine costing $660,000 with a 5-year life and an estimated $50,000 salvage...
On June 1, a machine costing $660,000 with a 5-year life and an
estimated $50,000 salvage value was purchased. It was also
estimated that the machine would produce 200,000 units during its
life. Actual production would be 40,000 units per year for all five
years.
Using the depreciation template provided, determine the amount
of depreciation expense for the third year under each of the
following assumption
The company uses the double-declining-balance method of
depreciation.
50 Cast Salvage value Depreciable cost...
Please don’t use excel A company has a machine purchased for $50,000 that has an estimated...
Please don’t use excel
A company has a machine purchased for $50,000 that has an estimated salvage value of $5,000 at the end of its 5-year useful life. The actual salvage value turned out to be $8,000 in year 5. The company's tax rate is 21%. If the before tax cash flow for this machine is as shown below, fill in the cells A-F on the table using sum-of-years-digits depreciation (6 pts). 5-2+ A 1500o YEAR BTCF Depreciation Book Value...
A delivery truck was just purchased for $80,000. It's estimated salvage value at the end of...
A delivery truck was just purchased for $80,000. It's estimated salvage value at the end of its useful life, in 8 years, is $20,000. Assume 25% tax rate, and straight-line depreciation. a. What is the amount of annual depreciation? b. What is the book value after 6 years? C. Assuming the company decides to sell the truck after 6 years of service, and receives $50,000 from the sale, calculate the after-tax net cash inflow from the sale of the truck....
The Vermont Construction Company purchased a truck on January 1, 2009 at a cost of $35000. The truck has a useful life of eight years with an estimated salvage value of $6000. The straight-line method...
The Vermont Construction Company purchased a truck on January 1, 2009 at a cost of $35000. The truck has a useful life of eight years with an estimated salvage value of $6000. The straight-line method is used for book purposes, for tax purposes the track would be depreciated with the MACRS method over its five-year useful life. Determine the depreciation amount to be taken over the useful life of the having truck for both and tax purposes.
On January 1,2018, a machine was purchased for $100,000. The machine has an estimated salvage value...
On January 1,2018, a machine was purchased for $100,000. The machine has an estimated salvage value of $5,920 and an estimated useful life of 5 years. The machine can operate for 112,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 22,400 hrs; 2019, 28,000 hrs; 2020, 16,800 hrs; 202 1, 33,600 hrs; and 2022, 11,200 hrs. (a) Compute the annual depreciation charges over the machine's life...
Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of 5...
Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000. Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using: 1- Straight-line Method. 2- Units of Production Method if the machine produces 100,000 units. Here is a table of units produced each year: First Second Third Fourth Fifth 23,000 25,000 - 30,000 22,000 3- Double Declining Balance Method
On January 1, 2014, a machine was purchased for $120,000. The machine has an estimated salvage...
On January 1, 2014, a machine was purchased for $120,000. The machine has an estimated salvage value of $6,000 and an estimated useful life of 6 years. The machine can operate for 200,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2014, 35,000 hrs; 2015, 45,000 hrs; 2016, 55,000 hrs; 2017, 30,000 hrs; 2018, 20,000 hrs; 2019, 15,000 hrs. (a) Compute the annual depreciation charges over the...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage value of $10,000. (i) For the Straight Line method of depreciation, what is the depreciation rate and what is the book value at the end of year 10? (ii) If the declining balance method is to be used, at what depreciation rate (i.e. the capital cost allowance CCA rate), the book value at the end of year 10 will be the same as for...
5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end of 8 year useful life. Compute the depreciation table by (a) Straight Line method (b) MACRS method (7-year property) (c) If you want to sell the machine in 4th year what book value you will use? (a) What book value you will use to pay tax to IRS in 4 year?
On June 1, a machine costing $660,000 with a 5-year life and an
estimated $50,000 salvage value was purchased. It was also
estimated that the machine would produce 200,000 units during its
life. Actual production would be 40,000 units per year for all five
years.
Using the depreciation template provided, determine the amount
of depreciation expense for the third year under each of the
following assumption
The company uses the double-declining-balance method of
depreciation.
50 Cast Salvage value Depreciable cost...
Please don’t use excel
A company has a machine purchased for $50,000 that has an estimated salvage value of $5,000 at the end of its 5-year useful life. The actual salvage value turned out to be $8,000 in year 5. The company's tax rate is 21%. If the before tax cash flow for this machine is as shown below, fill in the cells A-F on the table using sum-of-years-digits depreciation (6 pts). 5-2+ A 1500o YEAR BTCF Depreciation Book Value...
A delivery truck was just purchased for $80,000. It's estimated salvage value at the end of its useful life, in 8 years, is $20,000. Assume 25% tax rate, and straight-line depreciation. a. What is the amount of annual depreciation? b. What is the book value after 6 years? C. Assuming the company decides to sell the truck after 6 years of service, and receives $50,000 from the sale, calculate the after-tax net cash inflow from the sale of the truck....
On January 1,2018, a machine was purchased for $100,000. The machine has an estimated salvage value of $5,920 and an estimated useful life of 5 years. The machine can operate for 112,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 22,400 hrs; 2019, 28,000 hrs; 2020, 16,800 hrs; 202 1, 33,600 hrs; and 2022, 11,200 hrs. (a) Compute the annual depreciation charges over the machine's life...
3(a) A machine has a life of 20 years, costs $200,000 and has an estimated salvage value of $10,000. (i) For the Straight Line method of depreciation, what is the depreciation rate and what is the book value at the end of year 10? (ii) If the declining balance method is to be used, at what depreciation rate (i.e. the capital cost allowance CCA rate), the book value at the end of year 10 will be the same as for...
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