Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost…
A: Depreciation refers to the reduction in the value of an asset over time due to factors such as wear…
Q: Define the term Salvage value and gains tax?
A: Depreciation: The term depreciation refers to the fall in monetary value of assets due to its use,…
Q: A machine was purchased at an original cost of P3,250,114 with a salvage value of P386,985. The…
A: The depreciation rate per unit using the service output method of depreciation is calculated as…
Q: 1. A company purchases an asset for P10,000 and plans to keep it for 20 years. If the salvage value…
A: Given, A company purchased an Asset = 10000 the Asset i keep for 20 years the salvage The value = 0…
Q: This depreciation method assumes constant amount is depreciated each year over depreciable (useful)…
A: In economics, depreciation is defined as a measure of decrease in the market value of an asset over…
Q: Problem 1: A dump truck was bought for P750,000 three years ago. It will have a salvage value of…
A: Accrued depreciation at end of 3rd year: =(Cost- Salvage)x [(1+i%)3 -1]/[(1+i)5 -1] here i =…
Q: A machine cost P160,000 and is estimated to have a life of 6 years. If the rate of depreciation is…
A: Salvage value is the valuation of an asset (here, a machine) at the end of its useful life. In other…
Q: he first costs of an equipment is P 65,000 and a salvage value of X at the end of its life of 7…
A: Costs of an equipment = 65,000 Salvage Value = x Life = 7 years Depreciation after 3 years =…
Q: Johnny Johnny yes papa, purchased a heavy Machinery costing $11000 with a useful life of 10 years…
A: DBM Given machinery cost = 11000 $ life of asset = 10 years salvage value = 1000 $ depreciation =…
Q: A rice production company has purchased its milling equipment. The cost of this is 5,000,000.…
A: Given The initial cost of equipment (P)=5,000,000 Salvage value (F)=1,000,000 Life =5 years Book…
Q: factory has decided to purchase some new equipment for P600, 000. The equipment will be kept for 10…
A: given cost of equipment = 600000 P time = 10 years salvage value = 45000 P Adjusted value = cost –…
Q: A truck used for transporting unobtainium has a net cost of $30,000, useful life of 7 years, and no…
A: Step 1: Introduction to depreciationDepreciation refers to a method of expensing the cost of a…
Q: Quèstion 3 Depreciation be applied to machinery, equipment, vehicles, telephone, computers,…
A: Answer: True, Explanation: The given statement is true because all of the given items are assets…
Q: It cost k depreciation life CRS property class age value A $8,000 $8,000 $8,000 $8,000 $8,000 $8,000…
A: The expected decline in value of a fixed asset over the course of a fiscal year is represented by…
Q: Define the term Depreciable Property?
A: Accordance with the IRS (internal revenue service) rule, any asset which is eligible for the…
Q: Find the depreciation for the sixth year using MACRS cost-recovery rates for the property placed in…
A: Economic depreciation is defined as an asset's wear and tear that exceeds its projected capacity or…
Q: Major medical complexes and their service providers continue to move toward advanced health…
A: The ordinary depreciation strategy is doubled by the double falling balance depreciation method,…
Q: What is the Book value of an equepment purchased four years apo for$100,000, a sakage valuo…
A: The book value of equipment purchased four years ago for , with a salvage value of and an expected…
Q: Straight Line Depreciation Example: If an asset costs $20,000, has an estimated salvage value of…
A: If an asset costs $20,000, has an estimated salvage value of $5,000 and a useful life of 5 years,…
Q: N1 New equipment costing $35,000 has a 5 -year life and no salvage value. Benefits are expected…
A: New Equipment = 35,000 Salvage Value = 0 n = 5 years Benefits = 9000 Combined marginal Income tax =…
Q: Find net domestic capital formation if depreciation is $88 million and the value.of gross domestic…
A: We are given that:- Depreciation = $88 million Gross domestic capital formation = $300 million We…
Q: Ederly Quarry sells a wide variety of cut limestone for residential and commercial building…
A: a. The cost of depletion can be calculated as follows: Substitute the respective values in the…
Q: Problem 6: ZYK Corporation makes its policy that for a new piece of equipment purchased, the annual…
A: Given that, annual depreciation must not exceed 20% of the first cost we have to find the length of…
Q: A certain machinery costs P 50,000 lasts 12 years with a salvage value of P 5,000. If the owner…
A: Cosy of Machinery = 50,000 Salvage Value = 5000 n = 12 years
Q: Calculate depreciation rate if:- GNP at MP = $13000 NDP at FC = $3500 Net factor income to abroad…
A: The data presented in the question above is:- GNP at MP = $13000 NDP at FC = $3500 Net factor…
Q: Which of the following is (are) required to calculate MACRSGDS depreciation deductions? I. Property…
A: Under MACRS, a Taxpayers must register deducted tax for devaluation of unmistakable property…
Q: Q5 A coal mine has a gross income of $300,000 for the year. Mining expenses equal $300,000. Compute…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Show manual solutions and depreciation schedule/table. An equipment costing P250,000 has an…
A: The declining balance method is a sped-up deterioration process for recording bigger devaluation…
Q: Calculate the salvage value of equipment with a service life of 15 years if it was purchased 5 years…
A: Salvage value defines the residual worth of an asset at the end of its useful life, representing the…
Q: An equipment cost P67,000 and has a life of 10 years and salvage value of P53,500. Determine the…
A: Depreciation represents the reduction in the asset's value. A depreciation charge is an amount in…
Q: Determine if each item below is a traceable or a common fixed cost. Depreciation on equipment used…
A: A cost that can be directly linked to a particular product line, service, or industry sector is…
Q: wo fadures are being considered for a particular job in a manufacturing firm. The pertinent data for…
A: Given information Fixture X Capital investment= $35000 Annual cost=$6000 Useful life=6 years Market…
Q: Use the units of production method to find depreciation for the following: Cost Salvage Value…
A: To compute the annual depreciation expenses for the every machine, we’re going to compute the units…
Q: Age: 25 Status: Single, no children Gross Income: $54,000 401k investment: $4000 Residential…
A: Income tax is a type of tax imposed by governments on individuals, businesses, and other entities…
Q: Identify the depreciation method used for Double-declining-balance depreciation?
A: Double declining balance method: it is an accelerated method of depreciation under which the…
Q: uppose that the depreciation rate increases. In the Solow growth model, determine the effects of…
A: The depreciation causes fall in the availability of capital per workers. Now more saving or…
Q: Machine that cost $150,000 and on which $120,000 of accumulated depreciation has been recorded was…
A: Given is the following information in the question: Cost of machine = $150000 Accumulate…
Q: op an ATCF for problem 3, if 50% of the initial investment is borrowed a nual interest rate of 5% to…
A: *Answer: *4
Q: Electronic Games is moving very quickly to introduce a new interrelated set of video games. The…
A: Given, Initial Investment : $9 millionSalvage Value after 6 years : $700,000Production Savings :…
Q: A business needs to purchase packaging equipment that will provide revenue of $120,000 per year for…
A: Loan Amount = 70000 Payable in 6 years at 12.5% . So , annual payable amount = 70000(A/P , 12.5% ,…
Q: 4. Last month, a company specializing in wind power plant design and engineering made a capital…
A: Economic depreciation is a calculation of the fall in the market value of an asset over time from…
Q: medical complexes and their service providers continue to move toward advanced health informatics -…
A: Given, Cost = 270000 Salvage value = 10000 Useful life = 6 Depreciation calculated as Double…
Q: Labor costs, materials, all direct and indirect costs, and facilities and productive equipment with…
A: Depreciation is the value of used asset. It is simple giving some cost to a good over its useful…
Q: QUESTION 5 A construction store sells a wide variety of cut limestone for residential and commercial…
A: The depletion method is used to calculate the annual writing-off amount particularly in the case of…
(a) What is meant by half-year convention?
(b) Where does it show up in the MACRS
rate table? What is its effect?
(a).
Half-year conversion assumes that all the assets are placed in the mid-point during the tax year of installed.
Step by step
Solved in 2 steps
- complete solution, thank you3. You purchased a 5-year property class item for $60,000. After using this item for 3 years you sold it for $5,000. What is your gain or loss for tax purposes? Use MACRS depreciation method.Pertinent information for two alternatives A and B is shown below. If i=10%/year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A 150,000 100,000 Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years True 30,000 False 15,000 5 Alt.B The depreciation charge for Alt. B at the end of year 4 is greater than $30,000. 225,,000 100,000 10,000 22,500 5
- The cost of a depreciable asset is equal to: a. purchase cost + costs attributable to put the asset for use b. current market price of the asset c. only purchase cost of the asset d. purchase cost + estimated salvage or residual valueCalculate the depreciation value during the first year using the Declining Balance method of a CCTV system worth $20000 with no salvage value using 200% declining balance which depreciates over 5 years. a. $10000 O b. $12000 O c. $6000 d. $8000A project capitalized for P 2,850,000 invested in depreciable asset will earn a uniform annual revenue of P 1,650,000 for 10 years. The costs for operation and maintenance total P 725,000 a year, and taxes and insurance will cost 3% of the first cost each year. The company expects its capital to earn 14% before income taxes. *** Type the letter of the correct answer. Using ROR method 1. The depreciation cost is: a) P 546,383.59 2. The total annual cost is: a) P 957,883.59 3. The rate of return is: • Using AW method 5. The annual revenue is: a) 44.92% 4. Is this a desirable investment? a) NO b) YES a) P 1,750,000 6. The total annual cost is: a) P 1,755,883.59 7. Annual worth is: b) P 147,383.59 a) P 293,116.41 8. Would you recommend a) NO b) P 1,356,883.59 b) 38.85% b) P 3,240,000 b) P 1,543,606.94 b) - P 105,883.59 investing? b) YES c) P 285,000.00 c) P 1,144,606.94 c) 24.28% c) MAYBE c) P 2,429,600 c) P 1,356,883.59 c) P 155,500.00 c) MAYBE d) P 334,106.94 d) P 1,095,500.00 d) 22.46%…
- A. When the price =50000-500(Demand) and the variable cost-$3000 per unit, the value of demand that maximize the profit B. The installation cost of a machine is $10000 with estimated life of 10 years and selvage value of $2000 at the end of the 10th year. What will be the annual depreciation cost in the fourth year (using straight line method)? C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the first year. The expenditures are expected to be ($1500) at the end of the first year, $1000 at the end of second year, and to increase by $500 at the end of each of the next 4 years. The salvage value at the end of the 8th year is $1500. Draw the cash flow diagram. D. The Present worth (PW) of 5 annual payment of $10000 paid at the end of the each of the 5 years with interest rate of % 16 compounded quarterly is. E. The Future worth at the end of the 4 years (FW4) of the four $2000 annual payment paid at the beginning of each of the 4 years (shown in Figure…4. New equipment used in construction with a cost basis of $60,000 with a zero salvage value at the end of its useful life of 6 years. Use the Double Declining method to calculate the depreciation charge in year 4. $7,494 $2,633.75 $5,925.93 $10,0003 Question 3 options: At any point in time, the cost of equipment less any depreciation to date is known as
- < A crane rental company has acquired a new heavy-duty crane for $210,000. The company calculates depreciation on this equipment on the basis of number of rentals per year, and the salvage value of the crane at the end of its 9-year life is $20,000 If the crane is rented an average of 101 days per year, what is the depreciation rate per rental? The depreciation is $ per day of rent. (Round to the nearest dollar.) EWhat are three depreciable costs that are included in an asset’s basis?RZ Company, a calendar year taxpayer, paid $6,400,000 for a commercial office building and allocated $400,000 of the cost to the land and $6,000,000 of the cost to the building. RZ place the realty in service on May 11. Refer to the appropriate MACRS Table in Chapter 7 to compute RZ's first-year depreciation on the realty. Use Table 7-4. Multiple Choice $136,380 $102,720 $96,300 None of these choices are correct
