:alli2 bris spbelwon 10Y 129) Your client, Barwa Taxis, has purchased a motor vehicle for $300,000 before the end of the year 2012 by 5 months. The cost of freight is $44,000, and the Qatari import tax applied is 2%. They estimate that its useful life is 5 years and after that, the salvage value will be $50,000. Design the depreciation schedule for this asset using the straight-line depreciation method. ear Activity No. 3 cded in depregationen Opening book value chines. costs expenses xpenses are include deprecia Annual Depreciation amount Closing book value Accumulated depreciation amount u mota A uded depreciation

:alli2 bris spbelwon 10Y 129) Your client, Barwa Taxis, has purchased a motor vehicle for $300,000 before the end of the year 2012 by 5 months. The cost of freight is $44,000, and the Qatari import tax applied is 2%. They estimate that its useful life is 5 years and after that, the salvage value will be $50,000. Design the depreciation schedule for this asset using the straight-line depreciation method. ear Activity No. 3 cded in depregationen Opening book value chines. costs expenses xpenses are include deprecia Annual Depreciation amount Closing book value Accumulated depreciation amount u mota A uded depreciation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6
XYZ company has A piece of new equipment will cost $70,000. The equipment will provide a cost savings of $15,000 per year for ten years, after which it will have a $3,000 salvage value. If the required rate of return is 14%, the equipment's net present value is: a. (8240) b. None of answers are correct c. 9050 d. 23888
Please solve and show work. The correct answer should be 13.7
If a new machine is purchased for OMR 200,000 that has a useful life of 5 years with no residual value and the current cost of the machine after 2 years is OMR 180,000 and transportation charges are OMR 10,000 then what would be the realizable value of the machine? a. OMR 170,000 b. OMR 180,000 c. OMR 160,000 d. OMR 186,000
Super Mega Business Corporation (SMBC) is purchasing a $20 million machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of five years. It will have no salvage value. For their financial statements, SMBC always use the straight-line depreciation method. A) What are the straight-line depreciation expenses associated with this machine in year 2 after the purchase? B) What is the machine’s depreciation tax shield in year 3 after the purchase, assuming the SMBC’s marginal tax rate is 20%? C) Assume the MACRS depreciation schedule for this type of machine runs over three years and assigns the following percentage values: 20%, 50% and 30%. What is the MACRS depreciation expense in year 2? D) Assume the company can either buy the machine in January or December of the first year. Which one will generate more MACRS depreciation in the first year and why? With explanation please.
Q4. Al Dhahabi Mills Ltd. purchases a machinery which costs RO 20,000. The useful life of the machine is 10 years and the annual rate of depreciation is 8% per annum, depreciation being calculated on WDV method. After 10 years, the existing machine has to be replaced by a new one which will cost 250% more than the book value of the existing machine at that time. a) If company sells existing machine at scrap value, What is the extra amount the company will require at the end of 10th year to replace the existing machine by a new one? b) Do you agree with company's decision to sell the existing machine after 10 years and buy new one. Give reasons to your answer
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A company has purchased a machine (CCA rate 24%) at $300,000 and has a tax rate of 33.00%. By how much will the NPV change if the company is able to obtain a $13,000 salvage value for its machine at the end of the project's life in Year 4? Assume a discount rate of 11.20% and that all else remains the same. Question 10Answer a. $8,502 b. $10,415 c. -$1,913 d. $6,589 e. $10,075
the answer to this question is Q2.17a= $11,200 , Q2.17b= $5734 , Q2.17c=$2936 but we just need to find how we get that answer for these questions please help
Hayden Company is considering the acquisition of a machine that costs $561,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $100,000, and annual operating income of $85,000. The estimated cash payback period for the machine is (round to one decimal place) a.6.6 years b.5.6 years c.7.8 years d.1.2 years