Englehard purchases a slurry-based separator for the mining of the clay that costs $650,000 and has an estimated useful life of 10years, a MACRS-GDS property class of 7 years, and an estimated salvage value of $75,000 after 10 years. It was financed using a$205,000 down payment and a loan of $445,000 over a period of 5 years with interest at 10%. Loan payments are made in equalannual amounts (principal plus interest) over the 5 years.a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year?Depreciation = $b. What is the book value at the end of the 3rd year?Book value = $c. Returning to the original situation, what is the amount of the MACRS-GDS depreciation taken in the 3rd year if the separator isalso sold during the 3rd year?Depreciation = $Use depreciation percentages to 2 decimal places. Round final answers to whole dollar. Tolerance is ± 50.

Name: Englehard purchases a slurry-based separator for the mining of the cl
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Englehard purchases a slurry-based separator for the mining of the clay that costs $650,000 and has an estimated useful life of 10years, a MACRS-GDS property class of 7 years, and an estimated salvage value of $75,000 after 10 years. It was financed

The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes…

Business

Finance

a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year? Depreciation = $ b. What is the book value at the end of the 3rd year? Book value = $ c. Returning to the original situation, what is the amount of the MACRS-GDS depreciation taken in the 3rd year if the separator is also sold during the 3rd year? Depreciation = $

a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year? Depreciation = $ b. What is the book value at the end of the 3rd year? Book value = $ c. Returning to the original situation, what is the amount of the MACRS-GDS depreciation taken in the 3rd year if the separator is also sold during the 3rd year? Depreciation = $

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

See similar textbooks

Similar questions

1. SYDM: A property that is book-depreciated over a 10-year period by the Sum of Years Digit Method has $9,745.45 depreciation charge and $37,109.09 book value on the 3rd year. Determine the assumed salvage value of the property. 2. SYDM: A property that is book-depreciated over a 10-year period by the Sum of Years Digit Method has $7,309.09 depreciation charge and $21,272.73 book value on the 5th year. Determine the assumed salvage value of the property.
Required: State the effect (higher, lower, no effect) of accelerated depreciation relative to straight-line depreciation on a. Depreciation expense in the first year. b. The asset's net book value after two years. Cash flows from operations (excluding income taxes). с.
1. How much is the depreciation expense for the fiscal year ended June 30, 20x9? 2. How much is the revaluation surplus on December 31, 20x8? 3. How much is the carrying amount of the equipment on June 30, 20x9?
An enterprise provides each of its directors with a car. The company purchases these at £40,000 each. After 4 years of use it replaces each vehicle and sells the older vehicles. It does this through an auction whilst placing a reserve price of 50% below the original cost. Using the reducing balance method of depreciation determine the annual change in value for each of the four years that the vehicle is owned. Once you have done that, answer the following: What is the depreciation (change in value) during year 4 alone? £3950 £3400 £4515
9. Compute for the depreciation in the first year using double declining method. a. 40,000 c. 72,000 b. 36,000 d. 80,000 10. How much is the book value of the equipment as of end of second year using output method of depreciation? a. 360,000 c. 301,500 b. 341,500 d. 230,000
30-The book value of the asset sold is calculated as a. Book Value = Cost – Accumulated Depreciation b. Book Value = Cost – Sale Value c. Book Value = Cost – Depreciation for the year d. Book Value = Cost – Salvage Value
Compared to straight-line depreciation for a fixed asset with a 5-year useful life, the depreciation method used by Waren (i.e., the SUA) would result in higher net book value in year 3 for the same fixed asset. True False
What is the amount of double declining balance depreciation for year 4 if the cost of an asset is $75,000 the useful life is 5 years and the salvage vague is $4000
With straight-line depreciation, the book value of the asset is reduced by the same amount each year. a. True b. False
The correct percentage to use to calculate the depreciation allowance for a MACRS 3-year property for Year 2 is which of the following? (a) 14.4% (b) 32.0% (c) 33.3% (d) 44.5%?
A. CALCULATE the amount, if any, of recapture of depreciation, ordinary loss or capital gain on the disposal of an asset that was sold at the end of year 1 for $ 18,000. The machine was originally purchased at a cost of $ 20,000 and was depreciated using the MACRS method for a 5 year property class. B. INDICATE if there was recapture of depreciation (D), ordinary loss (P) or capital gain (G) in the disposal of this asset. [fill these blanks] * Amount = $. ___- * Type of disposition:
Which of the following best describes an accelerated depreciation method? A. A method by which an equal amount of expense is assigned for every full year of use. B. A method by which depreciation is based on the level of actual usage rather than the passage of time. C. A method of determining depreciation which assigns larger expenses to the initial years of an asset’s service and smaller expenses to the later years. D. A method of allocating the cost of a wasting asset to expense over the periods during which the value is removed from the property.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS