A tractor costs $25,020, has an expected life of 12 years, and has a salvage value of $2,700. Use straight-line depreciation to find the yearly depreciation. Make a depreciation schedule for the first three years' depreciation.---Complete the table.| Year | Depreciation | Accumulated Depreciation | End-of-year Book Value ||------|--------------|--------------------------|------------------------|| 1 | $ | $ | $ || 2 | $ | $ | $ || 3 | $ | $ | $ |

Depreciation is used to allocate the cost of an asset throughout its useful life. It provides the…

Answered: A tractor costs $25,020, has an…

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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Evaluate and select the best purchase of the following vehicles using straight line depreciation, a tax rate of 25%, and an after-tax MARR of 9% per year: Vehicle A: Cost = $20,000, Salvage Value= $5000, Annual operating cost = $1000, Life = 6 years Vehicle B: Cost = $15,000, Salvage Value = $2000, Annual operating cost = $1200, Life = 6 years %3D **Remember that this is based on Chapter 12, not the Park chapter, so no opportunity cost needs to be considered, this is a straight PVW comparison after taxes***
Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Acquisition cost of equipment Useful life Salvage value at end of useful life Annual straight-line depreciation Annual income generated by asset (before deducting depreciation) Year 1 2 3 4 Use a 10 percent rate to compute the imputed interest charge. Required: Complete the following table. LO 5 Income Before Depreciation $ Annual Depreciation 246,000 $ 246,000 246,000 246,000 246,000 $820,000 164,000 $ 164,000 164,000 164,000 164,000 5 years 0 $164,000 $246,000 Income Net of Depreciation 82,000 82,000 82,000 82,000 82,000 Based on Net Book Value Average Net Book Imputed Interest Value Charge Residual Income Based on Gross Book Value Imputed Interest Charge Average Gross Book Value Residual Income
A device costs $20,000. After 7 years, it is expected to be worth $6,000. Using the SL method, find the annual depreciation amount. $14,000 $1,085 $2,000 $3,714
Requirement 1. For each depreciation method, prepare a depreciation schedule showing asset cost, depreciation expense, accumulated depreciation, and asset book value for each year of the asset's life. For the units of production method, round depreciation per unit to three decimal places. Before completing the straight-line depreciation schedule, calculate the straight-line depreciation rate. One year Useful life (SL) Depreciation rate - X 1 More Info - X Requirements Complete the Straight-Line Depreciation Schedule. Begin by filling out the schedule through 2019, and then complete the schedule by entering the amounts through 2022. On January 4, 2018, Bailey Enterprises, Inc., paid $205,600 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $1,000 for transportation charges, $100 for insurance for the equipment while in transit, $10,500 sales tax, and $2,800 for a special which to place the equipment in the plant.…
Make a partial depreciation schedule for the third year using the units-of-production depreciation for a laser engraver that costs $43,000 and has scrap value of $4,000. The engraver has an expected life of 200,000 hours and is expected to last 15 years. Year Hours Annual Accumulated used depreciation depreciation 1 24,499 2 20,056 3 22,444 Complete the table below. Round each answer to the nearest cent Accumulated depreciation $4,777 31 $8,688.23 Year Hours Annual used depreciation 24,499 $4.777.31 $3,910.92 End of year book value 1 2 20,056 322,444 End-of-year book value $38.222.69 $34,311.77 Ame
An asset costs $260,000 and is classified as a ten-year asset. What is the annual depreciation expense for the first three years under the straight-line and the modified accelerated cost recovery systems of depreciation? Be sure to apply the half-year convention to straight-line depreciation. Use Exhibit 9.4 to answer the question. Round your answers to the nearest dollar. Straight-line depreciation: Year 1 2 3 Accelerated cost recovery system of depreciation: Year 1 2 Depreciation expense $ 3 Depreciation expense $ AA
An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would accumulated depreciation be at the end of three years assuming straight line depreciation? Group of answer choices $60,000 $40,000 $48,000 $160,000
Please show all your work
mework i Saved You skipped this question in the previous attempt. Jim Company bought a machine for $46,900 with an estimated life of 6 years. The residual value of the machine is $6,700. Assume straight-line depreciation. a. Calculate the annual depreciation. Annual depreciation b. Calculate the book value at the end of year 3. Book value
I am using MACRS for depreciation. Purchase date: September 1st Cost: $650,000 Salvage: $30,000 Life: 7 years What percent do I use to calculate depreciation for years 1-8?
Calculate the total cost, total depreciation, and annual depreciation (in $) for the following assets by using the straight-line method. (Round your answers to the nearest cent.) Cost ShippingCharges SetupCharges TotalCost SalvageValue EstimatedUseful Life(years) TotalDepreciation AnnualDepreciation $76,400 $1,500 $750 $ $4,500 11 $ $
Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) 5 Elapsed time since purchase (years) 2 Asset A Installed cost $839,000 The remaining book value is $ (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 3 4 5 6 7 8 3 years 33% 45% 15% 7% 9 10 11 Totals Percentage by recovery year* 5 years 7 years 20% 14% 32% 19% 12% 12% 5% 25% 18% 12% 9% 8% 7% 6% 6% 6% 4% 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year 10 years 10% 18%…

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