A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of nine years. It will have a zero salvage value at that time. The 150% declining balance method is used to depreciate this asset. What is the gain (or loss) on the disposal of the device if it is sold for $3,200 after eight years

A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of nine years. It will have a zero salvage value at that time. The 150% declining balance method is used to depreciate this asset. What is the gain (or loss) on the disposal of the device if it is sold for $3,200 after eight years

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

See similar textbooks

Similar questions

A new barcode reading device has an installed cost basis of $21,700 and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset a. What will the depreciation charge be in year seven? b What is the book value at the end of year six? c What is the gain (or loss) on the disposal of the device if it is sold for $3,000 after six years? a. The depreciation charge in year seven will be (Round to the nearest dollar.) b The book value at the end of year six is $ (Round to the nearest dollar.) c The on the disposal of the device if it is sold for $3,000 after six years is $1. (Round to the nearest dollar.) gain loss
A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of nine years. It will have a zero salvage value at that time. The 150% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year nine? b. What is the book value at the end of year eight? c. What is the gain (or loss) on the disposal of the device if it is sold for $3,200 after eight years? a. The depreciation charge in year nine will be $. (Round to the nearest dollar.)
A new barcode reading device has an installed cost basis of $20,670and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year seven? b. What is the book value at the end of year six? c. What is the gain (or loss) on the disposal of the device if it is sold for $1,000 after six years? a. The depreciation charge in year seven will be ... nothing. b. The book value at the end of year six is ... nothing. c. The ... loss gain on the disposal of the device if it is sold for $1,000 after six years is .. nothing.
A new barcode reading device has an installed cost basis of $24,750 and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. Solve, a. What will the depreciation charge be in year seven? b. What is the book value at the end of year six? c. What is the gain (or loss) on the disposal of the device if it is sold for $800 after six years?
A new CNC machine has an installed with a cost basis of $35,000 and an estimated service life of seven years. It will have a zero-salvage value at that time. The 200% declining balance method is used to depreciate this asset. What will the depreciation charge be in year seven? What will be the book value at the end of year six? c. What will be the gain (or loss) on the disposal of the asset if it is sold for $1,200 after six years?
A new barcode reading device has an installed cost basis of $21,490 and an estimated service life of eight years. It wilI have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year eight? b. What is the book value at the end of year seven? c What is the gain (or loss) on the disposal of the device if it is sold for $2,400 after seven years? a. The depreciation charge in year eight will be $ (Round to the nearest dollar.) b The book value at the end of year seven is S. (Round to the nearest dollar.) c The on the disposal of the device ifit is sold for $2,400 after seven years is S. (Round to the nearest dollar.) loss gain
A new CNC machine has an installed with a cost basis of $35,000 and an estimated service life of seven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year seven? b. What will be the book value at the end of year six? c. What will be the gain (or loss) on the disposal of the asset if it is sold for $1,200 after six years?
A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of nine years. It will have a zero salvage value at that time. The 150% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year nine? a. The depreciation charge in year nine will be $ (Round to the nearest dollar.)
A new barcode reading device has an installed cost basis of $22,330 and an estimated service life of nine years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. A)What is the book value at the end of year eight? A)The book value at the end of year eight is $enter your response here. (Round to the nearest dollar.)
Ane barcode reading device has an instated cost basis of $21,760 and an estimated service life of seven years it will have a zero salvage valun at that time. The 150% deckning balance method is used to depreciate this asset a. What will the depreciation charge be in yearseven? b. What is the book value at the end of years? e What is the gain (or loss) on the disposal of the device if it is sold for $900 after six years? a. The depreciation charge in year soven will be $(Round to the nearest dollar) CETTE
A machine now in use was purchased fouryears ago at a cost of $30,000. It has a book valueof $9,369. It can be sold for $12,000, but it could beused for three more years, at the end of which time,it would have no salvage value. What is the currentamount of economic depreciation for this asset?
Benson Enterprises is deciding when to replace its old machine. The machine’s current salvagevalue is $1.2 million. Its current book value is $1 million. If not sold, the old machine will requiremaintenance costs of $420,000 at the end of the year for the next five years. Depreciation on theold machine is $200,000 per year. At the end of five years, it will have a salvage value of $220,000.A replacement machine costs $3.5 million now and requires maintenance costs of $160,000 at theend of each year during its economic life of five years. At the end of five years, the new machinewill have a salvage value of $540,000. It will be fully depreciated using the three-year MACRSschedule. In five years a replacement machine will cost $4,000,000. Pilot will need to purchasethis machine regardless of what choice it makes today. The corporate tax is 35 percent and theappropriate discount rate is 10 percent. The company is assumed to earn sufficient revenues togenerate tax shields from…