None A surface mount PCB placement/soldering line is to be installed for $1,600,000. It will have a salvage value of $150,000 after 5 years.Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life.Click here to access the MACRS-GDS Table CalculatorPart a-Your answer is partially correct.Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life usingstraight-line depreciation.ΕΟΥ01Depreciation0640000Balances160000096000023840005760003234110345600

Depreciable Value = Cost of the asset - Salvage value= 1,600,000 - 150,000= 1,450,000 Annual…

Answered: A surface mount PCB placement/soldering…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 2P

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A surface mount PCB placement/soldering line is to be installed for $1,800,000. It will have a salvage value of $90,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset’s life. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset’s life using declining balance depreciation using double declining balance switching to straight line depreciation.
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Cisco Systems is purchasing a new bar code scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 25% of the hardware cost. a. What is the cost basis of the device? b. What are the annual depreciations of the device if (i) the SL method is used? (ii) the 150% DB method is used? (iii) the 200% DB method is used? c. Calculate the book values of the device at the end of 4 years using all the methods above. Answers: (a) The cost basis of the device is (Round to the nearest dollar) (b) Annual depreciaitions and book values: (Round to the nearest dollar) Year 1 2 3 4 Book values at end of year 4 SL $ 150% DB $ 200% DB $ $ C Cost Item Hardware Training Installation Cost $165,000 $16,000 $14,000
Cisco Systems is purchasing a new bar code scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 22% of the hardware cost. a. What is the cost basis of the device? b. What are the annual depreciations of the device if (i) the SL method is used? (ii) the 150% DB method is used? (iii) the 200% DB method is used? c. Calculate the book values of the device at the end of 4 years using all the methods above. Answers: (a) The cost basis of the device is $ (Round to the nearest dollar) (b) Annual depreciaitions and book values: (Round to the nearest dollar) 200% DB Year 1 2 3 4 Book values at end of year 4 SL 150% DB (...) 0 Cost Item Hardware Training Installation Cost $165,000 $15,000 $15,000
An automated assembly robot that cost $300,000 has a recovery period of five years with an expected $50,000 salvage value. If the MACRS depreciation rates for years 1, 2, and 3 are 20.0%, 32.0%, and 19.2%, respectively, what is the depreciation recapture, capital gain, or capital loss, provided the robot was sold after 3 years for $80,000?
A new CNC machine is purchased for $40,000. The salvage value of the CNC machine is expected to be 15% of the initial cost. The CNC machine qualifies for 3-year GDS MACRS depreciation. What is the book value of the CNC machine after two years of depreciation?
Two different types of hydraulic equipment are being considered for a certain power plant. Machine A has a first cost of P15,000, and a salvage value of P1,500, life is 6 years and has an annual maintenance an operating cost of P900. Machine B has a first cost of P18,000, life of 8 years with no salvage value. Annual operating cost is P750. Which machine would be used to justify the purchase of such machine if money is worth 7% and compute the difference between its equivalent present worth? Show solutions.
An automated assembly robot that cost $400,000 has a depreciable life of five years with a $100,000 salvage value. If the MACRS depreciation rates for years 1, 2, and 3 are 20.00, 32.00, and 19.20%, respectively, what is the book valueof the robot at the end of year three?
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