A piece of newly purchased industrial equipment costs $1,010,000 and is classified asseven-year property under MACRS. The MACRS depreciation schedule is shown in theMACRS Table.Calculate the annual depreciation allowances and end-of-the-year book values for thisequipment. (Do not round intermediate calculations and round your answers to thenearest whole number, e.g., 32. Leave no cells blank. Enter "0" when necessary.)Year12345678BeginningBook ValueDepreciationAllowanceEnding BookValue Year25678 A WN343-Year33.33%44.4514.817.41Property Class5-Year20.00%32.0019.2011.5211.525.767-Year14.29%24.4917.4912.498.938.928.934.46

MARCS stands for Modified Accelerated Cost Recovery System Marcs depreciation system is used to…

Answered: A piece of newly purchased industrial…

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

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A piece of newly purchased industrial equipment costs $970,000 and is classified as seven-year property under MACRS (MACRS Schedule). Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Leave no cells blank. Enter "0" when necessary. Year 1 2 3 4 5 6 7 8 Beginning Book Value Depreciation Allowance Ending Book Value
A machine was on purchased on September 30th for $500,000 with a residual value of $45,000. The company estimates that the machine will last 7 years and produce 2,000,000 parts over its life. Calculate depreciation expense using the Straight-Line method for the 7-year life. (NOTE: Round your answers to the nearest dollar and enter it enter it WITHOUT decimals, commas or dollar signs [Example 75000].) 1. Year 1 __$ 2. Year 2 - 3. Year 3 4. Year 4 - 5. Year 5 - $ 6. Year 6 - 7. Year 7 8. Year 8 -
DO NOT COPY ANOTHER ANSWER THAT'S ALREADY GIVEN. Use MACRS to compute the depreciation schedule for office furniture purchased for $80,000 (use the 7 yr depreciation schedule). Assume salvage value is $10,000
Wardell Company purchased a mini computer on January 1, 2022, at a cost of $41,700. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,200. On January 1, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2024 to reflect the revised estimate. 2. Prepare the appropriate adjusting entry for depreciation in 2024 to reflect the revised estimate, assuming that the company uses the sum-of-the-years'-digits method instead of the straight-line method. Required 1 Required 2 Prepare the appropriate adjusting entry for depreciation in 2024 to reflect the revised estimate, assuming that the company uses the sum-of-the-years'-digits method instead of the straight-line method. Note: If no entry is required for a transaction/event, select "No journal entry…
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Find the depreciation for the third year using MACRS cost-recovery rates for the property placed in service at midyear. The property is a 3-year property and was purchased for $98,452. Click the icon to view a table of MACRS rates. X The depreciation is $. (Round to the nearest cent as needed.) MACRS Table Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3-Year 33.33% 44.45 14.81 7.41 Depreciation rate for recovery perioa 5-Year 7-Year 10-Year 15-Year 20.00% 10.00% 5.00% 14.29% 32.00 19.20 11.52 11.52 5.76 24.49 17.49 12.49 8.93 8.92 8.93 4.46 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461
On March 15, 2022, Helen purchased and placed in service a new Escalade. The purchase price of the automobile was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Assuming that Helen does not use additional first-year depreciation, calculate the total depreciation deduction that she can take on the vehicle for 2022. Section § 179 expense MACRS cost recovery Total deduction b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation?
An industrial equipment is purchased for $300,000. It is expected to work for 12 years before it is sold for $50,000. Moreover, the annual cost of maintaining this equipment is estimated to be $20,000. Given those information and MARR-10%, answer Questions 1-4 below: For all questions, you are required to show all calculations. 1) Use the switchover technique of 150% DB to depreciate this equipment during its service life 2) Use the Corporate Federal Tax (2006) to construct the AFTCF given the calculations obtained in Question 1 and annual revenue of $150,000 3) Use 25% income tax rate to construct the AFTCF given the calculations obtained in Question 1 and annual revenue of $150,000 4) Calculate the PWs of the two cashflows obtained in Questions 2 & 3
A firm is trying to decide whe ther to keep an item of construction equipmentanother year. The firm is using the DOB method for book purposes. and this is the fourth year of ownership of the equipment. The item cost $220.000 when it was new. What is the depreciation in year three? Assume that the depreciable life of the equipme nt is eight years. with zero salvage value.
Avalon Industries buys equipment for $90,000, expects to use it for six years, and then sell it for $6,000. Using the straight-line method, the company should report annual depreciation for the equipment of: Multiple Choice O $15,000. O O $14,000. $28,000. $31,750.
Sheffield Company purchased machinery on January 1, 2020, for $93,600. The machinery is estimated to have a salvage value of $9,360 after a useful life of 8 years. (a) Your answer is incorrect. Compute 2020 depreciation expense using the sum-of-the-years'-digits method. Depreciation expense $ eTextbook and Media Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: unlimited (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer

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