Engineering Econ HW9 Q 3. Gamma Cruise, Inc. purchased a new tender (a small motorboat) for $35,000. Its salvage value is$7500 after its useful life of 5 years. Determine the depreciation schedule and book value overthe recovery period using MACRS with 80% bonus depreciation. Assume the equipment is inthe 5-year MACRS property class.

To solve this problem, we need to determine the depreciation schedule and book value of the asset…

Answered: 3. Gamma Cruise, Inc. purchased a new…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An equipment costs $4433082 with the estimated salvage value of $542566 at the end of 10 years. What is the annual depreciation cost by sinking fund method at 3.8% interest? Round your answer to 2 decimal places. Add your answer
12. A video-recording system was purchased 3 years ago at a cost of $39,000. A 5-year recovery period and DDB (Double Declining Balance) depreciation have been used to write off the basis. The system is to be replaced this year with a trade-in value of $5,000. What is the difference between the book value and the trade-in value? The difference between the book value and the trade-in value is $________ .
Doja Products placed a new machine into production 3 years ago. It had an installed cost of $100,000, a life of 5 years, and an anticipated salvage of $20,000. Book depreciation charges for the 3 years are $40,000, $24,000, and $14,000, respectively. Determine the book value after 3 years and the yearly depreciation rate.
1. A company purchased equipment for $20,000 on January 1, 2015. The estimated useful life is 5 years and the residual at the end of the 5 years is $2,000. The company uses the declining balance depreciation method. What will be the carrying value (book value) at December 31, 2017? 2. Ali purchased a machine on 1/1/14 for $200,000, estimated salvage value of $20,000, and estimated service life of 6 years. If the depreciation expense for 2015 was $42,857, calculate the depreciation amount?
A front-end loader costs $70,000 and has a depreciable salvage value of $10,000 at the end of its 5-year useful life. Use MACRS depreciation to compute the depreciation schedule and book value of the equipment.
Please use depreciation method
dont use pen paper
3. damp truck bought for P900,000 six years ago. It will have a salvage value of P100,000 two years from now. What is the book value at the end of 6th year. Use Straight-line Method 4. company owns earth moving equipment that cost P100,000. After 8 years it will have estimated Parvage value of P20,000. Compute the annual depreciation cost and the book value at the end of 5 years (a) using SLD (b) Using sinking fund
A truck used for transporting unobtainium has a net cost of $30,000, useful life of 7 years, and no salvage. Complete the following depreciation table using UOP depreciation.
Pls help with this homework-)
Compute the composite depreciation rate and the composite life of Dickinson's assets. BE11-7 Holt Company purchased a computer for $8,000 on January 1, 2013. Straight-line depreciation is used, based on a 5-year life and a $1,000 salvage value. In 2015, the estimates are revised. Holt now feels the computer will be used until December 31, 2016, when it can be sold for $500. Compute the 2015 depreciation. 5BE11-8 Jurassic Company owns equipment that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair value of the equipment is $400,000. Prepare the journal entry, if any, to record the impairment loss.
The first cost of machine is P 1,800,00 with a salvage value of P300,000 at the end of ts life of 5 years. Determine the total depreciation after 3 years using Sum of Years Digit Method.

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