how MACRS depreciation is calculated? and what is a benefit of MACRS?
how MACRS depreciation is calculated? and what is a benefit of MACRS?
Using the information available in the MACRS table below, what will the year 3 depreciation expense be for a capital investment with a $10.5 million depreciation base that can be depreciated on a 3-Year MACRS schedule?
Look at the numbers calculated in the yellow field. In plain english please, 1.explain how depreciation was calculated for years 1-3. 2.explain how depreciation was calculating for years 4-6. Hint: End-of-year basis for year 3 is 28.8% divided by 5 = 5.8% Explain why divide by 5? DE 3 year 1 4 year 2 5 year 3 6 year 4 7 year 5 8 Total DDB over 5 years (not tax) 40.00% 24.00% 14.40% 8.64% 12.96% 100.00% End of year...
What is the effect of using MACRS rather than straight-line depreciation? It increases the NPV. The total amount of depreciation is increased. It increases gross fixed assets. It allows asset book values to increase with market values.
Why would you choose MACRS over Straighline Depreciation? AND What is the implication for incremental Cash Flow analysis?
life are used to depreciate a 23. MACRS, Realty. (Obj. 1) What depreciation method and useful life are used to home office placed in service in 2019? Explain.
The ________ a capital asset is NOT part of the MACRS and is ignored for depreciation expense. salvage value of straight-line value of inventory from dividends paid from
Bumble Bee Co. had taxable income of $7,600, MACRS depreciation of $5,600, book depreciation of $1,700, and accrued warranty expense of $1,000 on the books although no warranty work was performed. What is Bumble Bee's pretax accounting income? $2,700. $2,900. $4,700. $10,500.
Year two in each of the MACRS depreciation schedules: O is the only, year in which MACRS depreciation is greater than straight line depreciation O is the year in which taxes are more under MAORS than under straight line. o is the point at which depreciation becomes unimportant to a company O is superior to straight line because of the time value of money o None of the above is true.
The summit petroleum Corporation will purchase an asset that qualifies for three year MACRS depreciation. The cost is $430,000 in the ass that will provide the following stream of earnings before depreciation and taxes for the next four years: Year 1: $200,000 Year 2: 245000 Year 3: 84,000 Year 4: 76,000 The firm is in a 40% tax bracket and has a cost of capital of 12%. A. Calculate the net present value. Use the formula and financial calculator methods....
Year 0 Year 1 Year 2 Year 3 MACRS Depreciation Rate 33.33% 44.45% 14.81% 7.41% A firm is considering the purchase of a new machine for $325,000. The firm is unsure if it should use the 3-Year MACRS schedule or straight-line depreciation over three years. What is the difference in the book value after three years if the firm uses MACRS instead of straight-line depreciation? Group of answer choices $300,918 $48,166 $0 $24,083