QUESTION 3 Mark, Inc purchases equipment for $57320. The equipment will be depreciated over 5 years with no residual value. Mark' annual net income for the year will be $84320. Mark' annual cash flows will be $
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- QUESTION 9 D Mark, Inc purchases equipment for $54220. The equipment will be depreciated over 5 years with no residual value. Mark' annual net income for the year will be $78550. Mark' annual cash flows will be $Question 27 Southern Inc. purchases an asset for $184,000. This asset qualifies as a 3-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 33.33%, year 2 = 44.45%, year 3 = 14.81%, and year 4 = 7.41%. Southern has a tax rate of 20%. If the asset is sold at the end of 3 years for $40,000, what is the cash flow from disposal? $54,261 $43,409 O $84,782 $67,826 $34,727 Question 27 ofMACRS Year 0 Depreciation Rate 33.33% $55,998 $79,608 $57,962 A machine is purchased for $850,000 and is used through the end of Year 2. The machine will be depreciated using the 3-Year MACRS schedule in the table above. At the end of Year 2, the machine is sold for $75,000. What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 35%? $62,985 $75,000 Project Year Year 1 44.45% $70,795 Year 2 14.81% Year 3 7.41%
- Problem 10: Use the following information for the next three questions: On January 1, 2021, DELAY Co. sold transportation equipment with a historical cost of P8,000.000 and accumulated depreciation of P2,800,000. In consideration for the sale, DELAY Co. received cash of P400,000 and a noninterest-bearing note receivable of P4,000,000 due in 4 equal annual installments. The first installment was made on January 1, 2021. The prevailing rate of interest for this type of note is 12%. 29. How much is the carying amount of the note on initial recognition? 30. How much is the interest income for 2021? 31. How much is the carrying amount of the note on January 1, 2022? Problem 11: Use the following information for the next three questions: On January 1, 2021, FORCEFUL Co. sold machinery with historical cost of P8,000,000 and accumulated depreciation of P4,400,000 in exchange for a 3-year, P4,800,000 noninterest-bearing note receivable due in equal semi-annual payments starting July 1, 2021.…Problem 3 Salameda sold a tract of land with a carrying amount of P3,000,000 to Hacienda Pontiveros on July 1, 2018. 1,200,000 was collected on the date of sale, and the balance of P2,800,000 is collectible in four annual installments P902,500, consisting of principal and 11% interest on the unpaid balance. The first annual installment is due July 1, 2019. 1. How much should be the interest income for the year December 31, 2019? a. 121,303 b. 154,000 c. 275,303 308,000 2. What amount of notes receivable should be classified as noncurrent assets on December 31, 2019? a. 2,800,000 b. 1,210,500 c. 1,545,605 d. 2,205,500QUESTION 4 An asset with initial cost base of 6 million was bought 5 years ago. At the end of the current year (fifth year) the asset is sold by 1.1 million. The asset belongs to the 7 years MACRS property class. Knowing that the gains(loss) tax rate is 40%, what is the net proceeds resulted from selling this asset? $897,400 2,044,012 978,700 2,371,600
- • X Company purchases equipment for $120,000 on January 1, 2020. The equipment is estimated to last for 5 years with a residual value of $20,000. Using double-declining balance, depreciation expense for the year ended December 31st, 2022 will be: O $20,000 O $26,667 $28,800 O $17,280Problem 9: Use the following information for the next five questions: On January 1, 2021, PITIFUL Co. sold transportation equipment with a historical cost of P8,000.000 and accumulated depreciation of P2,800,000. In consideration for the sale, PITIFUL Co. received cash of P400,000 and a noninterest-bearing note receivable of P4,000,000 due in 4 equal annual installments starting December 31, 2021. The prevailing rate of interest of this type of note is 12%. 24. How much is the carrying amount of the note on initial recognition? 25. How much is the interest income for 2021? 26. How much is the carrying amount of the note on December 31, 2021? 27. How much is the current portion of the note on December 31, 2021? 28. How much is the noncurrent portion of the note on December 31, 2021? IQ.6 An asset will cost $20 000 when purchased this year. It is further expected to have a salvage value of $2 000 at the end of its five year depreciable life. Determine: The depreciation and the book value for period 2 (using Straight Line) The depreciation and book value for period 4 (using the sinking fund method) with an interest rate of 10%, compounded annually. The depreciation and the book value for period 3 (using the declining balance method) by assuming 0.2 for (d). The depreciation and book value for period 2 (using the sum-of-the-years-digits method).
- 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?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, 3,456LO.3 Renata Corporation purchased equipment in 2017 for 180,000 and has taken 83,000 of regular MACRS depreciation. Renata Corporation sells the equipment in 2019 for 110,000. What is the amount and character of Renatas gain or loss?
