#10#2 O8OA piece of newly purchased Industrial equipment costs $968,662.00 and is classified as a seven-year property underMACRS. What is the book value of this piece of equipment at the end of year 3?SubmitAnswer format: Currency: Round to: 2 decimal places.Show HintA firm purchases a new work cell for $360,489.00. The asset will be depreciated using a 3-year MACRS schedule. Whatis the book value of the asset after the third year? (Assume that there is no depreciation allowed at year 0)SubmitAnswer format: Currency: Round to: 2 decimal places.Show HintA firm buys a piece of equipment for $115,926.00 and will straight-line depreciate it to zero over five years. If the taxrate is 40,00 %, what is the present value of the depreciation tax shield if the cost of capital is 11.00%?SubmitAnswer format: Currency: Round to: 2 decimal places.Show Hint

The Modified Accelerated Cost Recovery System (MACRS) is a tax depreciation method used in the…

Answered: O 12 O B O A piece of newly purchased…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

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Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6â€“10 (the entry will be the same for each of the five years).
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.
Use the information in Problem A-1 to solve this problem. Assume that the van is five-year property for tax purposes. Required Prepare a schedule of depreciation under MACRS. Round figures to the nearest whole dollar. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 3 depreciation, 3,456
Q#04: A company XYZ has purchased a new CNC Machine which has a cost basis of $5,000 and 8-year depreciable life. The estimated salvage value of the machine is zero at the end of 8 years. Use the Declining Balance method to calculate the annual depreciation amounts when R = 1.5/N (150% DB method). Tabulate the annual depreciation amount and Book Value for each year.
1. A company purchases an asset for the P10,000 and plans to keep it for 20 years. If the salvage is zero at the end of 20" year, what is the book value in the third year? Use SOYD method 2. A machine purchased for P150,000 its estimated Ilife is 15 years, after which it will be sold for P40,000 find the book value during the 6th year if the sum of the year digit depreciation is used.
Amachine whose cost is 80.000 nyals and s value as scrap is 5,000 ryals and its useful ife is 5 years The balance of the depreciation complex for the second year according to the method of depreciating the dedning balance wil be. Second one: O 19200 O 12800 O 28800 O 51200
Q7.Alyoum Newspaper purchased LG printing machine for 100,000. Installation of the machine costs 8,000. The machine is expected to be used for 10 years at end of which the salvage value is expected to be 10,000. DDB method is used. What is the book value at end of year 3? 55,296 51,200 64,000 None of the other answers Q8.Given an asset that has a cost basis of $300,000 and was sold for $350,000. The book value for the asset at the time of sale was $150,000. Assume that the capital gain tax rate is 40% while the ordinary gain tax rate is 20%. What are the net proceeds from this sale? $300,000 $310,000 $270,000 None of the other answers Q9.Consider a 5-year MACRS asset, which was purchased at $140,000. The asset was disposed of at end of year 5 with a salvage value of $50,000. What is amount of gain(or loss) when asset is disposed of ? $33,872 $11,280 $17,744 $16,128
PQ16.09 An asset with a first cost of $100,000 is depreciated over 5-year period. It is expected to have a $10,000 salvage value at the end of 5 years. Using the straight-line method, what is the book value at the end of year 2?
Answer both A and B questions. A. Briefly explain the reason why a capital asset should be depreciated. Calculate the rate of depreciation and the depreciation to be charged at the end of the second year, using the written down value method? В. Life of the asset 4 years Scrap Value at the end of 4 years RO 8,000 Original Investment RO 120,000 Answer: 2.
Question1 On 09/01/X1, the company Purinos García, S.A., acquires a machine for €425,000. The machine carries a discount of €50,000. Half is paid in cash and the other half on 11/30/X2. The useful life of the machine is 10 years, the residual value of €1,800 and the linear amortization. Transport costs are €800 and installation costs €1,100, which are paid in cash. In addition, it is estimated that dismantling costs at the end of the useful life will amount to €6,700 -with a discount rate of 1.5%. At the end of the X1 financial year, the fair value of the machine is €350,000, the cost of sale is €8,000 and the value in use is €342,586. Finally, the machine is sold at the end of December of the X2 for a value of €108,000 in cash. It is also known that VAT is 21%. It is requested to record the following operations: Acquisition of the asset. Amortization at the end of X1. Deterioration at the end of X1 if applicable. Reclassification of the pending payment of the machinery. Payment of…
What is the value of an asset after 8 years of use if it depreciates from its original value of P 500, 000.00 to itssalvage value of 1.5% in 10 years? (Use Straight Line Method) Given: Required: Solution: refer to this textbook: https://drive.google.com/file/d/16J6M6RHBZ22NDaog_9DSXMgYb4qFu7T3/view?usp=sharing

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