21. A property is bought for 50000. It's expected useful life is 10 years and will have a resale value of15000. Using the Sum of the years digit depreciation method, find the book value during the 3rdyear.a. 44909.1b. 43636.36C.48090.91d. 48545.46е.None of the above

Sum of digits method is also called as sum of years depreciation method. It declines the asset at…

Answered: 21. A property is bought for 50000.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

17 Your company purchased an asset with a total cost of $300,000. The asset has an expected useful life of 20 years. The asset also has an expected residual value of $50,000. Please prepare the depreciation amounts for the first 3 years of the asset’s life using Straight-Line Method and Double Declining Balance methods. Please detail the depreciation amount and the ending book value for each year.
Ma4.
xyz company has equipment that cost 100000. after 8 years it will have a salvage value of 18000. using the double declining balance method find the depreciation charge in the 4th year
What is the depreciation deduction, using 200% DB method, after year 4 for an asset that costs #52811 and has an estimated salvage value of $7,000 at the end of its 5-year useful life? Round your answer to 2 decimal places. Add your answer
A5
Q-1) If an asset has a first cost of SR 100000 with a SR 20000 estimated salvage value after 15 years, calculate the book value for each year by using SL and DDB methods. I have already calculated depreciation value, so no need to explain again.
Answer asap
Q1) A piece of machinery costs $5,000 and its useful life is five year. Compute the schedule of depreciation and book value at the end of each year for the machinery by: 1. The Sum of Years Digits method if you know that the depreciation value for the first year is $1333. 2. The Straight Line method if you know that the depreciation value for the first year is $760.
7. A machine is purchased for $400,000. The machine is classified as MACRS 5-year property. The machine's useful life is 10 years. The estimated salvage value at the end of 10 years is $40,000. Using MACRS depreciation, compute the book value at the end of the third year.
The purchase price of an equipment is $45,000 which is expected to drop to $16,000 after 10 years of use. If the applicable depreciation method is the straight line depreciation, what is the book value of this equipment at the beginning of the 8th year? a. $20,300 b. $24,700 c. $23,200 d. $21,800 e. $2,900
3. The cost of a new station wagon is RM90000. It is estimated to have a useful life of 10 years with a scrap value of RM20,000. Using the declining balance method, find the book value and accumulated depreciation at the end of eight years. (BVs = RM27029.98, AD: = RM62970.02)
4.It is know that the book value of an asset depreciated through declining balance depreciation is $3000 in year 3.Purchase price of the asset was $3800.What is the asset salvage value at the end of its useful life,which is 10 years?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

21. A property is bought for 50000. It's expected useful life is 10 years and will have a resale value of 15000. Using the Sum of the years digit depreciation method, find the book value during the 3rd year. a. 44909.1 b. 43636.36 C. 48090.91 d. 48545.46 e. None of the above